tailieunhanh - Zimbabwean commercial banks liquidity risk determinants after dollarisation

The government of Zimbabwe adopted a multiple currency regime in January 2009 after a decade of economic decline. The new regime brought with it benefits to the economy and helped restart financial intermediation. Despite these benefits, many banks are facing challenges of liquidity risk. This paper empirically investigates the determinants of Zimbabwean commercial banks liquidity risk after the country adopted the use of multiple currencies exchange rate system. To do so, panel data regression analysis is used on monthly data from March 2009 to December 2012. From the panel data regression results, capital adequacy and size have negative significant influence on liquidity risk. | Zimbabwean commercial banks liquidity risk determinants after dollarisation

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