Liquidity Premium in the Economic and Monetary Union's and Poland's Banking Sectors - an Indicator of Financial (In)Stability

Emília Zimková

Published : 2015-04-30

Vol. 59 No. 2 (2015)

Liquidity Premium in the Economic and Monetary Union's and Poland's Banking Sectors - an Indicator of Financial (In)Stability

Emília Zimková

Abstract

The aim of the paper is to estimate the effects of liquidity premiums used as part of fund transfer pricing by commercial banks in Poland and in the European Monetary Union between 2008 and 2014. Based on the European Central Bank's methodology applied on average interest rates of 2-year deposits, a calculation of liquidity premium in four qualitatively different sub-periods (January 2008 - September 2008, October 2008 - June 2011, July 2011 - August 2013, September 2013 - May 2014) is performed. The results show that the financial crisis in the European banking sector is far from being over, but Poland's banking industry remains stable.(original abstract)

Keywords:

Banking sector, Commercial banks, Financial sustainability, Interest rate swap (IRS), Financial liquidity

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Zimková, E. (2015). Liquidity Premium in the Economic and Monetary Union’s and Poland’s Banking Sectors - an Indicator of Financial (In)Stability. Zeszyty Naukowe Wyższej Szkoły Bankowej W Poznaniu, 59(2). Retrieved from https://journals.wsb.poznan.pl/index.php/znwsb/article/view/993

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