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Top Academic Journal of Economics and Statistics
Vol. 8 No. 1 (2023): January-Febuary
Original Articles

TOWARDS ROBUST BANKING SYSTEMS: LIQUIDITY RISK AND FINANCIAL MARKET DYNAMICS IN WAEMU

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  • Mariam Traoré Camara ,
  • Amadou Bamba Coulibaly
Mariam Traoré Camara
Alassane Ouattara University (Bouaké) /LAMPE- Laboratory of Economic Policies’ Analysis and Modeling, Ivory Coast
Amadou Bamba Coulibaly
Alassane Ouattara University (Bouaké) /LAMPE- Laboratory of Economic Policies’ Analysis and Modeling, Ivory Coast

Published 2023-09-20

Keywords

  • banking sector,
  • resource allocation,
  • bank intermediation,
  • liquidity risk,
  • financial stability

How to Cite

Mariam, T. C., & Amadou , B. C. (2023). TOWARDS ROBUST BANKING SYSTEMS: LIQUIDITY RISK AND FINANCIAL MARKET DYNAMICS IN WAEMU. Top Academic Journal of Economics and Statistics, 8(1), 13–30. Retrieved from http://topjournals.org/index.php/TAJES/article/view/604

Copyright (c) 2023 Top Academic Journal of Economics and Statistics

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Abstract

The banking sector holds a pivotal position in the development of economies, primarily due to its critical role in resource allocation through the process of bank intermediation. In this process, banks channel short-term deposits into longer-term investments, a practice with far-reaching implications for their financial stability. This article explores the transformation of banking schedules and its consequences, particularly in relation to liquidity risk. Liquidity risk, defined as a situation where a bank fails to meet its short-term obligations, has the potential to jeopardize a bank's solvency and disrupt customer withdrawals, thus undermining depositor confidence and impacting overall bank performance and reputation. By examining the dynamics of liquidity risk in the banking sector, this study seeks to shed light on the key factors influencing its emergence and mitigation

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