Scholarly record
CONTRIBUTION OF THE LOANS AND INTEREST RATES STRUCTURE TO THE DEVELOPMENT OF LIQUIDITY IN THE BANKING SECTOR OF THE EURO AREA
Abstract
Currently is very topical the issue of stability and liquidity of banks and banking sectors. In this paper we bring evaluation of the liquidity situation in the banking sector of the Slovak Republic and comparison of main tendencies with the Eurozone. It will focus in particular on whether the current structure of loans as the main generator of profit is appropriately according preferences banks to get the profit in future. Although liquidity is related to the assets and liabilities of banks, the article focuses on the sub-problem, related to whether there is a sufficient space for the new and also profitable lending business of commercial banks. Therefore, we consider the potential profitability and structure of loans in the banking sector as the most important pillar of stability and ensure sufficient liquidity. Questions of the appropriateness of the credit structure will be analyzed on the basis of Markowitz modern portfolio theory and on the basis of the theoretical concept of net value of the bank. Markowitz modern portfolio theory takes into account income from loans and their mutual covariance, the theory of the net value of the bank takes into account in particular the anticipated changes in interest rates and loan maturities. We assume that where recommendations will be identical to the structure of the loan is a high probability that these recommendations are correct.
Publication Impact Profile
- Captures
- Mendeley - Readers: 3
Publication details
ReferencesPending
Structured references will appear here after the reference import pass. The count is preserved now so the scholarly record is not incomplete.
View or Download full articleAccess options
SWS access login
Login as SWS Scientific CommitteeLogin as SWS Scientific PartnerLogin as SWS AuthorAuthors and approved SWS contributors will read and export their own linked papers after identity matching by SWS profile, email and SGEM GlobalID.
For librarian assistance: [email protected]
Purchase Instant Access
- Article can be downloaded after successful payment.
- Article may be used according to SWS library access terms.
- Article cannot be redistributed.
