The Impact of Capital on Bank Liquidity: Case of Tunisia

  • Ben Moussa Mohamed Aymen

Abstract

Capital and liquidity are two important variables in banking industry. Capital is needed to allow a bank to cover any losses with its own funds. Also liquidity is fundamental to achieve the financial requirements of bank activity. The aim of this article is to determine the impact of capital on bank liquidity. We used a sample of 11 banks in Tunisia between (2005….2020). By applying a method of panel static (fixed effects) we found that capital has  a positive effect on bank liquidity.

Published
2022-06-22