Theoretical and Applied Economics
No. 1 / 2022 (630), Spring
Banking management in the prism liquidity – profitability interrelation
Bucharest University of Economic Studies, Romania
Amelia DIACONU
Artifex University, Romania
Svetlana PLATAGEA GOMBOS
Bucharest University of Economic Studies, Romania
Raluca Iuliana GEORGESCU
Bucharest University of Economic Studies, Romania
Abstract. Within a banking company, an important task is to estimate and cover the liquidity needs of the bank. In fact, achieving and maintaining this goal requires real art, as a low level of liquidity leads to significant cash reductions and the need to attract additional resources at high cost, resulting in a decrease in bank profits and excessive liquidity. The return on assets decreases, resulting in poor financial performance. Within a banking company, the most important banking activity is the attraction of money on the market in order to grant loans, thus aiming to obtain as much profit as possible. Any banking activity is accompanied by risks. These risks have negative effects on the bank's activities, such as: deterioration in business quality, impairment of the bank's functionality, decrease in profit, loss, entry into insolvency, bankruptcy.
Contents
Economic resilience in Central and Eastern European countries
Romania's economy on the threshold of recession
Testing the Marshall-Lerner condition for Romania
Empirical evidence to the nonmonotonic relationship between public health expenditure and economic growth
Institutional quality and public healthcare
Consequences of the Covid-19 epidemic on hygiene purchase behavior
Banking management in the prism liquidity – profitability interrelation
Long-term price and income elasticity of residential natural gas demand in Turkey
The impact of foreign direct investment on the economy of Bangladesh: A time-series analysis
Does gravity work in the context of India and ASEAN bilateral trade? An application of the FGLS method
The dynamics of India – ASEAN trade with special reference to manufactured exports and their technological composition
How does Israel share Palestinians their international aid
Attention economy and higher-order beliefs in voters’ online attention searches
Volatility and asymmetric analysis of Indian indices during Covid-19 pandemic period