The Determinants of Bank Liquidity: Case of Tunisia

Abstract

Liquidity is an important variable for the bank and the banking system components. So it is interesting to show its determinants. Thus, we used a sample of 18 banks in Tunisia in for 2000-2010period. We estimated two measures of liquidity (liquid assets / total assets; total loans / total deposits). Through the method of static panel and method of panel dynamic, we found that (financial performance, capital / total assets, operating costs/ total assets, growth rate of GDP, inflation rate, delayed liquidity) have significant impact on bank liquidity while (size, total loans / total assets, financial costs/ total credits,  total deposits / total assets) does not have a significant impact on bank liquidity. Keywords: bank; bank liquidity; static panel; Tunisia; dynamic panel JEL Classifications: C5; G2; G21