Examining Banking Regulation And Liquidity Risk: A Study Of Waemu
Dr. Mariam Diomande
Department of Economics, Felix Houphouet-Boigny University, Abidjan, Ivory Coast
Dr. François Kouassi
Department of Economics, Felix Houphouet-Boigny University, Abidjan, Ivory Coast
Abstract
The banking sector's role in allocating resources to investment projects is pivotal in developing economies. Banks transform short-term deposits into long-term loans, a process laden with responsibility and risk. Liquidity risk, characterized by a bank's inability to meet short-term commitments, poses a significant threat to its financial stability and reputation. This study delves into the impact of banking regulations on liquidity risk, a topic of contentious debate in the literature.