THE RIPPLE EFFECT: INVESTIGATING THE INFLUENCE OF STOCK MARKET LIQUIDITY ON BANK LIQUIDITY IN TEHRAN STOCK EXCHANGE
Keywords:
Banking sector, Liquidity, Stock market liquidity, Non-performing loans, Tehran Stock Exchange.Abstract
The banking sector plays an important role in the economy by providing financial and credit services. However, the growth of non-performing loans in recent years has been a major concern for the banking sector. This study investigates the effect of stock market liquidity on the liquidity of banks listed in Tehran Stock Exchange. The results show that stock market liquidity has a positive and significant effect on the liquidity of banks. This is because stock market liquidity provides banks with an opportunity to invest their excess funds and earn a higher return