Liquidity Creation Index Calculation in the Framework of Berger and Baumann's Pattern and its Impact on Banking Crises: An Application of the Logit and Probit Panel Model

Q: How can I download an article?

To download an article from SID, first log in to the site, search for the article title, and click on the 'Download Article' option.

Q: How can I download an ISI article?

To download an ISI article on SID, enter the keyword or article title in the search bar, view the relevant results, click on the desired article, and select the 'Download Article' option.

Q: How can I access the SID database?

To access the SID database, visit SID.ir, create an account, and log in to access scientific resources.

Q: Is downloading articles from SID free?

Some articles on SID are available for free, while others require payment. Details are specified on the article's page.

MAHMOUDINIA DAVOUD; MOHAMMADI ZAHRA; MEMARZADEH ABBAS

مرکز اطلاعات علمی Scientific Information Database (SID) - Trusted Source for Research and Academic Resources

Journal Paper

Paper Information

Journal: ECONOMIC STRATEGY Year:2019 | Volume:8 | Issue:28 Page(s): 67-110

Download Full-Text

Persian Verion

View:

1,194

Download:

Cites:

Information Journal Paper

Title

Liquidity Creation Index Calculation in the Framework of Berger and Baumann's Pattern and its Impact on Banking Crises: An Application of the Logit and Probit Panel Model

Author(s)

MAHMOUDINIA DAVOUD | MOHAMMADI ZAHRA | MEMARZADEH ABBAS | Issue Writer Certificate

Keywords

BankQ2

Creation of LiquidityQ1

Banking CrisisQ2

Logit and Probit PanelQ1

Abstract

Banks play an important role in the economy and financial markets by allocating funds. In fact, Banks act as financial intermediaries. Banks are also a pool of liquidity, creating this liquidity through the maturity of balance sheet items. Due to the importance of Bank liquidity, this research has attempted to calculate the liquidity creation index in the Banking system of Iran using the Berger and Bauman method (2009). Since Banks are the most important economic centers, it should be noted that liquidity will have a serious impact on their performance as well as on the economic situation of the community, and Banks will be subject to crisis and instability. The Markov-Switching model is used to characterize years based on the Banking crisis. Probit-Logit model has been used to investigate the impact of liquidity on the Banking crisis. Data from 2005 to 2017 of 17 private and public Banks are included. The results of this study will show that by using Berger and Bowman's (2009) model, liquidity creation has been calculated for 13 years and with the help of Logit model, the best model has been selected and shows that liquidity will have a positive impact on the Banking crisis. Assets, credit risk, inflation and deferred claims will have a positive impact, but free trade and capital adequacy will have a negative impact on the Banking crisis. In fact, Banks create liquidity to prevent Bankruptcy. However, liquidity creation will first cause loss for the Banks themselves and then for the economic society.

Cites

No record.

References

No record.

Cite

APA: Copy

MAHMOUDINIA, DAVOUD, MOHAMMADI, ZAHRA, & MEMARZADEH, ABBAS. (2019). Liquidity Creation Index Calculation in the Framework of Berger and Baumann's Pattern and its Impact on Banking Crises: An Application of the Logit and Probit Panel Model. ECONOMIC STRATEGY, 8(28 ), 67-110. SID. https://sid.ir/paper/233822/en

Vancouver: Copy

MAHMOUDINIA DAVOUD, MOHAMMADI ZAHRA, MEMARZADEH ABBAS. Liquidity Creation Index Calculation in the Framework of Berger and Baumann's Pattern and its Impact on Banking Crises: An Application of the Logit and Probit Panel Model. ECONOMIC STRATEGY[Internet]. 2019;8(28 ):67-110. Available from: https://sid.ir/paper/233822/en

IEEE: Copy

DAVOUD MAHMOUDINIA, ZAHRA MOHAMMADI, and ABBAS MEMARZADEH, “Liquidity Creation Index Calculation in the Framework of Berger and Baumann's Pattern and its Impact on Banking Crises: An Application of the Logit and Probit Panel Model,” ECONOMIC STRATEGY, vol. 8, no. 28 , pp. 67–110, 2019, [Online]. Available: https://sid.ir/paper/233822/en

Related Journal Papers