THE RIPPLE EFFECT: INVESTIGATING THE INFLUENCE OF STOCK MARKET LIQUIDITY ON BANK LIQUIDITY IN TEHRAN STOCK EXCHANGE

Authors

  • Dr. Maryam Taheri Tabrizi Graduated from the Department of Financial Management, Islamic Azad University of Mahabad, Iran
  • Dr. Amir Hosseini Kermani Graduated from the Department of Financial Management, Islamic Azad University of Mahabad, Iran
  • Dr. Zahra Mirzakhani Yazdi Graduated from the Department of Financial Management, Islamic Azad University of Mahabad, Iran.

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

Published

2023-12-07

Issue

Section

Articles