Version 1
: Received: 22 January 2024 / Approved: 23 January 2024 / Online: 23 January 2024 (09:26:17 CET)
How to cite:
Suleymanov, E.; Talishinskaya, S. The Analysis of Competition Impact on Liquidity Creation in the US Banking Industry. Preprints2024, 2024011641. https://doi.org/10.20944/preprints202401.1641.v1
Suleymanov, E.; Talishinskaya, S. The Analysis of Competition Impact on Liquidity Creation in the US Banking Industry. Preprints 2024, 2024011641. https://doi.org/10.20944/preprints202401.1641.v1
Suleymanov, E.; Talishinskaya, S. The Analysis of Competition Impact on Liquidity Creation in the US Banking Industry. Preprints2024, 2024011641. https://doi.org/10.20944/preprints202401.1641.v1
APA Style
Suleymanov, E., & Talishinskaya, S. (2024). The Analysis of Competition Impact on Liquidity Creation in the US Banking Industry. Preprints. https://doi.org/10.20944/preprints202401.1641.v1
Chicago/Turabian Style
Suleymanov, E. and Samra Talishinskaya. 2024 "The Analysis of Competition Impact on Liquidity Creation in the US Banking Industry" Preprints. https://doi.org/10.20944/preprints202401.1641.v1
Abstract
This analyses the impact of competition on liquidity creation in the banking industry of the United States. For the purposes of this paper panel data of US banks for the period of 1976-2000 is chosen as a sample. The plausible endogeneity issue is addressed by employing instrumental variables and then implementing two stages least squares method. Besides this, crisis period of 1990-1992 is also analyzed to compare effect with in “normal times”. The results show that decrease in the level of competition negatively affects the liquidity creation ability of banks in the US and this impact is even more negative during the crisis period.
Copyright:
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
