Open AccessSTRESS TESTING OF LIQUIDITY AT A SAMPLE OF SYRIAN PRIVATE BANKS
Author(s) -
Каисси Ал,
Каисси Ал
Publication year - 2019
Publication title -
vestnik kazanskogo gosudarstvennogo agrarnogo universiteta
Language(s) - English
Resource type - Journals
ISSN - 2073-0462
DOI - 10.12737/article_5d3e173b3dbe24.25208481
Subject(s) - market liquidity , liquidity risk , accounting liquidity , liquidity crisis , business , financial system , monetary economics , sample (material) , finance , economics , chemistry , chromatography
Sustainability tests are considered as a tool for measuring risk, especially with regard to the assessment of possible events in the banking sector as a result of changes in the general economic situation or the occurrence of certain events in the bank. The aim of this study is to test the ability of two Syrian private banks to bear liquidity risk using data for 2018 in accordance with the coefficients set by the Central Bank of Syria. The results of the study showed the ability of banks to resist liquidity risk in case of sudden withdrawal of funds from current deposits and the availability of sufficient funds to meet it. The sudden drop in current deposits in private Syrian banks does not reduce their ability to pay their financial obligations. Both banks successfully passed testing, achieved a positive net inflow, and the liquidity ratio after the test indicates a low liquidity risk. In other words, Syrian private banks are able to cope with liquidity risks. Private banks, whether ordinary or Islamic, are largely dependent on customer deposits, so any sudden negative changes that occur with these deposits have a negative effect on the liquidity of banks. The Syrian banking sector does not suffer from liquidity risk, has high liquidity ratios and is able to cope with economic changes. When adopting banking laws and regulations, Syrian regulators and authorities should take into account the differences between conventional and Islamic banks in terms of liquidity risks.