Keywords
profitability ratios
liquidity ratios
commercial banks
correlation analysis
liquidity ratios
commercial banks
correlation analysis
How to Cite
Klepkova Vodova, P. (2016) “BANK LIQUIDITY AND PROFITABILITY IN THE POLISH BANKING SECTOR”, Scientific Journal of Bielsko-Biala School of Finance and Law. Bielsko-Biała, PL, 20(1), pp. 19–33. doi: 10.19192/wsfip.sj1.2016.2.
Abstract
Liquidity and profitability are two very important aspects of the banking business. The aim of this paper is to thoroughly evaluate the development of bank profitability and liquidity in the Polish banking sector and to analyze the link between profitability and liquidity ratios with the use of correlation analysis over the period 2007-2013. Liquidity of the Polish banking sector has decreased during this period. Small banks are the less liquid, the most dependent on other sources of funding and their net interbank position is the most vulnerable. Profitability of Polish banks could be higher. With the exception of interest margin, profitability increases with size of the bank. The values of the Pearson´s correlation coefficient showed mixed results: the links between profitability and liquidity ratios differ among individual groups of banks.The papers published in the ASEJ Journal (alternate title: Zeszyty Naukowe Wyższej Szkoły Finansów i Prawa w Bielsku-Białej) - published by the University of Applied Sciences in Bielsko-Biała, are online open access distributed (Creative Commons Attribution CC-BY-NC 4.0 license). The Publisher cannot be held liable for the graphic material supplied. The printed version is the original version of the issued Journal. Responsibility for the content rests with the authors and not upon the Scientific Journal or Bielsko-Biala School of Finance and Law.
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