The Impact of Bank-Specific Determinants on Commercial Banks’ Liquidity in Namibia

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Date

2016

Journal Title

Journal ISSN

Volume Title

Publisher

Academic research publish group

Abstract

This paper examined the bank-specific determinants for commercial bank’s liquidity in Namibia. The study was based on quarterly data covering the period 2001:Q1 to 2014:Q2, utilizing the technique of unit root and ordinary least squares. The results of the unit root test showed that all variable were stationary in levels and thus, the ordinary least squares technique was used to conduct the estimation. The results revealed a statistical insignificant negative relationship between commercial bank’s liquidity and return on equity as a measure of commercial bank’s profitability. Furthermore, the results also showed a positive relationship between commercial bank’s liquidity and capital adequacy as well as between commercial bank’s liquidity and non-performing loans though statistical insignificant.

Description

Keywords

Bank-specific; Commercial bank’s liquidity; Namibia; Unit root; Ordinary least squares.

Citation

Sheefeni,J.(2016) The Impact of Bank-Specific Determinants on Commercial Banks’ Liquidity in Namibia, 2(8): 155-162