Digital Repository

The Impact of Liquidity Risk on the Financial Performance of Banks and Finance companies in Sri Lanka

Show simple item record

dc.contributor.author Perera, H.G.S.
dc.contributor.author Perera, K.H.
dc.date.accessioned 2021-02-19T10:03:18Z
dc.date.available 2021-02-19T10:03:18Z
dc.date.issued 2020
dc.identifier.citation Perera, H.G.S., Perera, K.H. (2020). The Impact of Liquidity Risk on the Financial Performance of Banks and Finance companies in Sri Lanka. In : 6th International Conference for Accounting Researchers and Educators, 2020. Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, p.50. en_US
dc.identifier.uri http://repository.kln.ac.lk/handle/123456789/22049
dc.description.abstract The banking and finance companies play a significant role in intermediation among depositors and borrowers. These enhance the flows of funds by lending cash to borrower, while providing liquidity to savers. Therefore, liquidity is very critical phenomenon for smooth operation of banking and finance sector business. This study aims to investigate the relationship between liquidity risk and financial performance of banking and finance companies in Sri Lanka. This study employed a sample of 12 commercial banks, 3 specialized banks and 15 finance companies. Independent variables include deposit to total assets ratio, cash reserve to total assets ratio, NPL ratio and liquidity gap while dependent variables include ROA, ROE and net profit margin. Data are retrieved from the balance sheets, income statements and notes of banks and finance companies during the period 2011 to 2019. This study employs multiple regressions to investigate the relationship between liquidity risk and financial performance of banking and finance companies. The study would be useful in developing credit operating procedures in respect of assets management that have impact on stability of banks and finance companies. This study is also useful all other sectors’ companies to assets management in accurate way. Economic factors contributing to liquidity risk are not covered in this paper and future research can be conducted by incorporating the economic factors affecting the liquidity risk. en_US
dc.publisher Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya en_US
dc.subject Liquidity Risk, Financial Performance, Banks & Finance Companies, Sri Lanka en_US
dc.title The Impact of Liquidity Risk on the Financial Performance of Banks and Finance companies in Sri Lanka en_US


Files in this item

This item appears in the following Collection(s)

Show simple item record

Search Digital Repository


Browse

My Account