Provisions and Reserves in Banking Sector Under Conditions Of Excess Liquidity Exemplified by Selected Banks Operating in Poland

Ewa Łosiewicz-Dniestrzańska

Abstract

Excess liquidity of banking sector implies that banks hold too much free funds instead of investing them, thus an undesired or even detrimental phenomenon occurs. Nevertheless, excess liquidity has also some strong points when we look at it as a “tool” supporting a bank’s safety and stability. Under uncertainty conditions, prudential regulations become more restrictive and result in more reserves and further security buffers in addition to basic capital requirements. The paper aims at researching the significance of bank’s excess liquidity for the creation of loan loss provisions and capital adequacy ratio as well as the contribution of an individual bank to liquidity of the whole sector. The research was conducted with financial data from selected banks listed on the Warsaw Stock Exchange.
Author Ewa Łosiewicz-Dniestrzańska (E&F / DoB)
Ewa Łosiewicz-Dniestrzańska,,
- Department of Banking
Pages6249-6257
Publication size in sheets0.5
Book Soliman Khalid S. (eds.): Education Excellence and Innovation Management: A 2025 Vision to Sustain Economic Development during Global Challenges, 2020, International Business Information Management Association (IBIMA), ISBN 9780999855141
Keywords in EnglishBanking Sector, Provisions and Reserves, Capital Adequacy Ratio, Excess Liquidity
Referenced project[17] Program doskonałości naukowo - badawczej INTEREKON . . Project leader at WUEB: Ewa Stańczyk-Hugiet, , start date 01-01-2019, end date 31-12-2022, in run
COBN
Languageen angielski
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Losiewicz-Dniestrzanska_E_Provisions_and_Reserves.pdf 201,82 KB
Score (nominal)70
Score sourceconferenceList
Citation count*
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UwagaThe project is financed by the Ministry of Science and Higher Education in Poland under the programme "Regional Initiative of Excellence" 2019 - 2022 project number 015/RID/2018/19 total funding amount 10 721 040,00 PLN
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* presented citation count is obtained through Internet information analysis and it is close to the number calculated by the Publish or Perish system.
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