This paper analyzes the impact of liquid asset holdings on bank profitability for a sample of Iranian banks. Using the Generalized Method of Moment (GMM), this study analyzes the profitability of listed banks using unbalanced panel data over the period of 2002-2009. We use the liquidity asset and liquidity asset-ratio square for estimating liquid asset and profitability relationship. The e...

A bank affiliated with a multi-bank holding company (MBHC) is significantly safer than either a stand-alone bank or a bank affiliated with a one-bank holding company. Not only does affiliation reduce the probability of future financial distress, but distressed affiliated banks are more likely to receive capital injections and recover more quickly than other banks. Interestingly, the effect of a...

The subject of government bank regulation is intimately intertwined with that of government deposit insurance. If the government is to insure bank deposits, it should also have some say in the risks that insured banks are allowed to take, otherwise it would leave itself wide open to unlimited potential losses. John H. Kareken (in this issue) comes close to arguing that banks without government ...

In this paper, we investigate the impact of liquidity requirements on bank risk. We take advantage implementation Liquidity Balance Rule (LBR) in Netherlands 2003 and analyze its default The LBR was imposed Dutch banks only did not apply to other operating elsewhere within Eurozone. Using differential regulatory treatment overcome identification concerns, find that following introduction LBR, r...

Bank liquidity shortages during the global financial crisis of 2007–2009 led to introduction regulations, impact which has attracted attention academics and policymakers. In this paper, we investigate regulation on bank lending. As a setting, use Netherlands, where Liquidity Balance Rule (LBR) was introduced in 2003. The LBR imposed Dutch banks only did not apply other operating elsewhere withi...