Macroeconomic determinats of commercial banks' liquidity in Namibia
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Date
2016
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Abstract
Searching for new ways remains a primary concern among scholars. In this paper the macroeconomic determinants of commercial banks’ liquidity in Namibia were considered and analysed. The unit root, bound test for cointegration and error correction model were employed using quarterly data covering the period 2001 to 2014. The results revealed that real gross domestic product is the main determinant of commercial banks’ liquidity in Namibia. It was also found that monetary policy rate is positively related to banks’ liquidity though statistically insignificant. On the contrary, the results revealed a negative relationship between inflation and commercial banks’ liquidity
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Keywords
Commercial banks’ liquidity, Error correction model, Bound test cointegration
Citation
Sheefeni, J.P>S., & Nyanbe, J.M. (2016). Macroeconomic determinats of commercial banks' liquidity in Namibia. European Journal of Business, Economics and Accountancy, 4(5), 19-30.