Determinants of Liquidity Risk in the Commercial Banks in Bangladesh

The study examines the bank-specific and external factors that affect liquidity risk in commercial banks Bangladesh. has been conducted using 23 data from 2005-2018, panel is used to conduct regression analysis. Among factors, asset size a negative relationship with risk. larger bank size, better position lower Return on equity capital adequacy ratio positive but insignificant risks. In case of macroeconomic inflation negatively affects risks, whereas GDP domestic credit positively affect. Private public sector credits increase investments, which turn fuel growth. Growth reduces may create insolvency. loan outstanding related banks. Banks usually loan/advance disbursement profitability, dries out enhances concludes although several are found yet have positive/negative relation, must carefully evaluate avoid future crisis.