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Liquidity Supervision in Financially Viable Sector with Reference to Public and Private Sector Banks in India

Received: 16 April 2016     Accepted: 25 February 2017     Published: 10 May 2017
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Abstract

Liquidity risk in Indian banking sector is strongly influenced by structural and business cycle factors over many years. Sudden change in technological development and market globalization has posed serious challenge to the Indian banks to manage liquidity. The deposit collections made were not able to keep up with the sudden loan growth. This paper summarizes the theoretical findings on the determinants of Liquidity Management by banks. The findings are summarized in a series of predictions.

Published in International Journal of Finance and Banking Research (Volume 3, Issue 2)
DOI 10.11648/j.ijfbr.20170302.12
Page(s) 34-38
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2017. Published by Science Publishing Group

Keywords

Liquidity, Demand Deposits, Term Deposits, Money at Call & Short Notice

References
[1] “Fed’s Yellen Hardens her stance on banks ”, Wednesday, August14, 2013, Delhi.Mint, page 20.
[2] TakurRajiv “Bank should wrest control of firms from willful defaulters”, Wednesday, August 14,2013, Delhi Mint, page 10.
[3] Diamond D.W, Rajan R.G (2000). A theory of Bank Capital. Journal of Finance 55, 2431-2465.
[4] Berger.A.N, Bouwman C.H.S, (2010). How does Capital effect bank performance during Financial Crisis
[5] Sambhav Garg, Priya Jindal & Dr.Bhavet (2013) “RBI Liquidity heightening threatens to take toll on bank Asset quality”, “The Indian Express August 05, 2013”.
[6] Guillermo Alger, Ingda Alger (1999), Liquid Assets in Banks: Theory and Practice, www.bc.edu/EC-P/WP446.pdf.
[7] Karthik Srinivasan and Vineet Gupta (2007). Liquidity Management in banks – An Increasingly.
[8] Complex affairs www.icar.in/files/articles/2007-Feb-Liquidity Management in bank.pdf.
[9] Vento G. A, Gang P. L "Bank Liquidity Risk Managementand Supervision: Which ". Journal of Money, Investment andBanking (10), p.79-126, 2009.
[10] FranckR,KrausM, “Liquidity risk and bank portfolioallocation”, International Review of Economics and Finance 16,p. 60–77, 2007.
[11] Lev Ratnovski1, “Liquidity and Transparency in Bank RiskManagement”, IMF Working Paper January 2013.
[12] Moraine Mohr Griffin, “Liquidity Risk Management AndFinancial Performance In Malaysia: Empirical Evidence FromIslamic Banks”, Aceh International Journal of Social Sciences,1 (2): 68-75 August 2012.
Cite This Article
  • APA Style

    Gokul G., M. R. Ranganatha. (2017). Liquidity Supervision in Financially Viable Sector with Reference to Public and Private Sector Banks in India. International Journal of Finance and Banking Research, 3(2), 34-38. https://doi.org/10.11648/j.ijfbr.20170302.12

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    ACS Style

    Gokul G.; M. R. Ranganatha. Liquidity Supervision in Financially Viable Sector with Reference to Public and Private Sector Banks in India. Int. J. Finance Bank. Res. 2017, 3(2), 34-38. doi: 10.11648/j.ijfbr.20170302.12

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    AMA Style

    Gokul G., M. R. Ranganatha. Liquidity Supervision in Financially Viable Sector with Reference to Public and Private Sector Banks in India. Int J Finance Bank Res. 2017;3(2):34-38. doi: 10.11648/j.ijfbr.20170302.12

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  • @article{10.11648/j.ijfbr.20170302.12,
      author = {Gokul G. and M. R. Ranganatha},
      title = {Liquidity Supervision in Financially Viable Sector with Reference to Public and Private Sector Banks in India},
      journal = {International Journal of Finance and Banking Research},
      volume = {3},
      number = {2},
      pages = {34-38},
      doi = {10.11648/j.ijfbr.20170302.12},
      url = {https://doi.org/10.11648/j.ijfbr.20170302.12},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijfbr.20170302.12},
      abstract = {Liquidity risk in Indian banking sector is strongly influenced by structural and business cycle factors over many years. Sudden change in technological development and market globalization has posed serious challenge to the Indian banks to manage liquidity. The deposit collections made were not able to keep up with the sudden loan growth. This paper summarizes the theoretical findings on the determinants of Liquidity Management by banks. The findings are summarized in a series of predictions.},
     year = {2017}
    }
    

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    AU  - Gokul G.
    AU  - M. R. Ranganatha
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    T2  - International Journal of Finance and Banking Research
    JF  - International Journal of Finance and Banking Research
    JO  - International Journal of Finance and Banking Research
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    AB  - Liquidity risk in Indian banking sector is strongly influenced by structural and business cycle factors over many years. Sudden change in technological development and market globalization has posed serious challenge to the Indian banks to manage liquidity. The deposit collections made were not able to keep up with the sudden loan growth. This paper summarizes the theoretical findings on the determinants of Liquidity Management by banks. The findings are summarized in a series of predictions.
    VL  - 3
    IS  - 2
    ER  - 

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Author Information
  • Department of Management Studies, the Oxford College of Engineering, Bangalore, India

  • Department of Management Studies, Don Bosco Institute of Management Studies and Computer Applications, Bangalore, India

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