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Offre optimale de liquidité bancaire par la Banque Centrale : une approche microéconomique
[Optimal Bank’s Liquidity Supply by the Central Bank: A Microeconomic Approach]

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  • TINANG NZESSEU, Jules Valery

Abstract

The excess liquidity of commercial banks is very often mentioned in the CEMAC as one of the limits of monetary policy implementation by BEAC. In this paper, we tried to address excess reserves in the CEMAC banking system looking from the point of view of commercial banks. Indeed, commercial banks may decide to hold reserves above the level required by the regulator for costs minimization perspectives. By minimising the cost function of each commercial bank, we derived the optimal level of excess liquidity desired by it. The obtained results allow classifying the banks of the CEMAC zone into two categories depending on the level of excess reserves necessary to minimize their costs and provide the amounts of liquidity desired by them. The Central Bank can then use this information to improve its liquidity supply to the banking system by anticipating the demands of liquidity by commercial banks during open market operations.

Suggested Citation

  • TINANG NZESSEU, Jules Valery, 2012. "Offre optimale de liquidité bancaire par la Banque Centrale : une approche microéconomique [Optimal Bank’s Liquidity Supply by the Central Bank: A Microeconomic Approach]," MPRA Paper 37940, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:37940
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    References listed on IDEAS

    as
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    4. Frederic Mishkin & Christian Bordes & Pierre-Cyrille Hautcoeur & Dominique Lacoue-Labarthe, 2007. "Monnaie, banque et marchés financiers," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-00308684, HAL.
    5. Joe Ganley, 2004. "Surplus Liquidity: Implications for Central Banks," Lectures, Centre for Central Banking Studies, Bank of England, number 3, April.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    réserves excessives; coût d'opportunité; coût d'ajustement; optimisation; fonction de densité;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • E51 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Money Supply; Credit; Money Multipliers
    • C02 - Mathematical and Quantitative Methods - - General - - - Mathematical Economics
    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • C15 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Statistical Simulation Methods: General

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