Issue: Số 10 - Tháng 5 - 2024Tài chính - Ngân hàng - Bảo hiểm
Using the bank's liquidity creation ratio to measure the level of banking performance
Published: July 28, 2026
Abstract
Most empirical studies on the performance of banks use bank assets and loans as the major indicators to measure the level of banking performance. This paper introduced a method to measure the level of banking performance through the bank's liquidity creation ratio instead of traditional methods that use total assets and loans. As the bank's liquidity creation ratio is more consistent with banking theory, it is considered a better method to measure the level of banking performance than that of traditional methods.
Keywords
ability to create liquiditymeasuring the level of banking performance
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