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Asset Liability Mismatch - An Empirical Study on Nationalized Commercial Banks in Bangladesh


Affiliations
1 Department of Business Administration, Stamford University Bangladesh, Bangladesh
2 Department of Business Administration, United International University, Bangladesh
 

Liquidity Management is the integral part of monetary management. Liquidity management, ensuring sustainable solvency are the two core prerequisites for smooth functioning of banks in the long run. The balancing act between a bank's own liquidity and its role as a liquidity creator, especially in times of financial distress or crisis, is the focus of this paper. The data collected mostly from the annual reports of the selected banks. Liquidity has been analysed by using gap analysis. The CV (Coefficient of variation) has been used to analyse the volatility of liquidity in the selected gap. The analysis showed that Sonali Bank suffered highest negative liquidity gap among the banks. Bat the gap was highly volatile in case of Agrani bank Ltd. On the other hand there is a statically significant difference among the banks in terms of variation in Liquidity.

Keywords

Liquidity Management, Gap, CV, ANOVA.
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Abstract Views: 568

PDF Views: 275




  • Asset Liability Mismatch - An Empirical Study on Nationalized Commercial Banks in Bangladesh

Abstract Views: 568  |  PDF Views: 275

Authors

Umme Hanna Airin Ara
Department of Business Administration, Stamford University Bangladesh, Bangladesh
Eliza Haque
Department of Business Administration, United International University, Bangladesh

Abstract


Liquidity Management is the integral part of monetary management. Liquidity management, ensuring sustainable solvency are the two core prerequisites for smooth functioning of banks in the long run. The balancing act between a bank's own liquidity and its role as a liquidity creator, especially in times of financial distress or crisis, is the focus of this paper. The data collected mostly from the annual reports of the selected banks. Liquidity has been analysed by using gap analysis. The CV (Coefficient of variation) has been used to analyse the volatility of liquidity in the selected gap. The analysis showed that Sonali Bank suffered highest negative liquidity gap among the banks. Bat the gap was highly volatile in case of Agrani bank Ltd. On the other hand there is a statically significant difference among the banks in terms of variation in Liquidity.

Keywords


Liquidity Management, Gap, CV, ANOVA.

References