IDEAS home Printed from https://ideas.repec.org/a/agr/journl/v1(630)y2022i1(630)p93-100.html
   My bibliography  Save this article

Banking management in the prism liquidity – profitability interrelation

Author

Listed:
  • Valentin PAUNA

    (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.

Suggested Citation

  • Valentin PAUNA & Amelia DIACONU & Svetlana PLATAGEA GOMBOS & Raluca Iuliana GEORGESCU, 2022. "Banking management in the prism liquidity – profitability interrelation," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(1(630), S), pages 93-100, Spring.
    • Handle: RePEc:agr:journl:v:1(630):y:2022:i:1(630):p:93-100
    as

    Download full text from publisher

    File URL: http://store.ectap.ro/articole/1582.pdf
    Download Restriction: no
    File URL: http://www.ectap.ro/articol.php?id=1582&rid=146
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Panayiotis C. Andreou & Dennis Philip & Peter Robejsek, 2016. "Bank Liquidity Creation and Risk-Taking: Does Managerial Ability Matter?," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 43(1-2), pages 226-259, January.
    2. Muhammad Haseeb & Hafezali Iqbal Hussain & Sebastian Kot & Armenia Androniceanu & Kittisak Jermsittiparsert, 2019. "Role of Social and Technological Challenges in Achieving a Sustainable Competitive Advantage and Sustainable Business Performance," Sustainability, MDPI, vol. 11(14), pages 1-23, July.
    3. Fiordelisi, Franco & Minnucci, Federica & Previati, Daniele & Ricci, Ornella, 2020. "Bail-in regulation and stock market reaction," Economics Letters, Elsevier, vol. 186(C).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Dumitru Alexandru BODISLAV & Florina BRAN & Cristina DIMA & Mihai DINU & Radu Florin CHIOTAN, 2023. "On The Verge Of A New Systemic Crisis €“ How Did We Get Here?," Proceedings of the INTERNATIONAL MANAGEMENT CONFERENCE, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 17(1), pages 168-174, November.
    2. Florina BRAN & Dumitru Alexandru BODISLAV & Ioan GAF DEAC & Florin UTA, 2023. "Business Ethics And Cautionary Integrity," Proceedings of the INTERNATIONAL MANAGEMENT CONFERENCE, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 17(1), pages 747-756, November.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Rasha Fady Ismail & Fadi Safieddine & Rawad Hammad & Mazhar Hallak Kantakji, 2022. "Towards Sustainable Production Processes Reengineering: Case Study at INCOM Egypt," Sustainability, MDPI, vol. 14(11), pages 1-25, May.
    2. Fall, François Seck & Tchakoute Tchuigoua, Hubert & Vanhems, Anne & Simar, Léopold, 2022. "Investigating the unobserved heterogeneity effect on microfinance social efficiency," LIDAM Discussion Papers ISBA 2022010, Université catholique de Louvain, Institute of Statistics, Biostatistics and Actuarial Sciences (ISBA).
    3. De Vito, Antonio & Pancotto, Livia & Perdichizzi, Salvatore & Reghezza, Alessio, 2023. "Don’t go on holiday in August! Market reaction to an unexpected windfall tax on banks," Economics Letters, Elsevier, vol. 233(C).
    4. Munshi Muhammad Abdul Kader Jilani & Luo Fan & Mohammad Tazul Islam & Md. Aftab Uddin, 2020. "The Influence of Knowledge Sharing on Sustainable Performance: A Moderated Mediation Study," Sustainability, MDPI, vol. 12(3), pages 1-18, January.
    5. Regmi, Rupesh & Zhang, Zhuo & Zhang, Hongpeng, 2023. "Entrepreneurship strategy, natural resources management and sustainable performance: A study of an emerging market," Resources Policy, Elsevier, vol. 86(PB).
    6. Meena Madhavan & Mohammed Ali Sharafuddin & Thanapong Chaichana, 2022. "Impact of Business Model Innovation on Sustainable Performance of Processed Marine Food Product SMEs in Thailand—A PLS-SEM Approach," Sustainability, MDPI, vol. 14(15), pages 1-33, August.
    7. Yeddou, Nacera & Pourroy, Marc, 2020. "Bank liquidity creation: Does ownership structure matter?," The Quarterly Review of Economics and Finance, Elsevier, vol. 78(C), pages 116-131.
    8. Serhiy SHKARLET & Igor OLIYCHENKO & Maksym DUBYNA & Maryna DITKOVSKA & Vladimir ZHOVTOK, 2020. "Comparative Analysis Of Best Practices In E-Government Implementation And Use Of This Experience By Developing Countries," REVISTA ADMINISTRATIE SI MANAGEMENT PUBLIC, Faculty of Administration and Public Management, Academy of Economic Studies, Bucharest, Romania, vol. 2020(34), pages 118-136, June.
    9. Xiaolei Zou & Xiaoxi Chen & Fengling Chen & Chuxin Luo & Hongyan Liu, 2020. "The Influence of Negative Workplace Gossip on Knowledge Sharing: Insight from the Cognitive Dissonance Perspective," Sustainability, MDPI, vol. 12(8), pages 1-17, April.
    10. Inder K. Khurana & Hoyoun Kyung, 2021. "Internal control material weakness and CEO recruitment," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 48(9-10), pages 1940-1987, October.
    11. Prateek Sharma, 2022. "Management quality, M-rating, and bank failures," SN Business & Economics, Springer, vol. 2(2), pages 1-32, February.
    12. Andri Ottesen & Dieter Thom & Rupali Bhagat & Rola Mourdaa, 2023. "Learning from the Future of Kuwait: Scenarios as a Learning Tool to Build Consensus for Actions Needed to Realize Vision 2035," Sustainability, MDPI, vol. 15(9), pages 1-25, April.
    13. James, Hui Liang & Ngo, Thanh & Wang, Hongxia, 2023. "The impact of more able managers on corporate trade credit," Journal of Behavioral and Experimental Finance, Elsevier, vol. 40(C).
    14. Mihai Andronie & George Lăzăroiu & Roxana Ștefănescu & Cristian Uță & Irina Dijmărescu, 2021. "Sustainable, Smart, and Sensing Technologies for Cyber-Physical Manufacturing Systems: A Systematic Literature Review," Sustainability, MDPI, vol. 13(10), pages 1-23, May.
    15. Sora Lee & Jaewon Yoo, 2021. "Determinants of a Firm’s Sustainable Competitive Advantages: Focused on Korean Small Enterprises," Sustainability, MDPI, vol. 13(1), pages 1-16, January.
    16. Vera Gelashvili & Juan Gabriel Martínez-Navalón & Miguel Ángel Gómez-Borja, 2024. "Does the intensity of use of social media influence the economic sustainability of the university?," The Journal of Technology Transfer, Springer, vol. 49(1), pages 19-43, February.
    17. Fang, Yi & Wang, Qi & Wang, Fan & Zhao, Yang, 2023. "Bank fintech, liquidity creation, and risk-taking: Evidence from China," Economic Modelling, Elsevier, vol. 127(C).
    18. F. S. Fall & H. Tchakoute Tchuigoua & A. Vanhems & L. Simar, 2023. "Investigating the unobserved heterogeneity effect on outreach to women: lessons from microfinance institutions," Annals of Operations Research, Springer, vol. 328(2), pages 1365-1386, September.
    19. John Mugambwa Serumaga-Zake & John Andrew van der Poll, 2021. "Addressing the Impact of Fourth Industrial Revolution on South African Manufacturing Small and Medium Enterprises (SMEs)," Sustainability, MDPI, vol. 13(21), pages 1-31, October.
    20. Andreou, Panayiotis C. & Karasamani, Isabella & Louca, Christodoulos & Ehrlich, Daphna, 2017. "The impact of managerial ability on crisis-period corporate investment," Journal of Business Research, Elsevier, vol. 79(C), pages 107-122.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:agr:journl:v:1(630):y:2022:i:1(630):p:93-100. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Mircea Dinu (email available below). General contact details of provider: https://edirc.repec.org/data/agerrea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.