Work detail

Bank´s Liquidity in Ukraine shortly before and during Political Instability of 2013-2015

Author: Bc. Ganna Efros
Year: 2016 - summer
Leaders: Mgr. Iuliia Brushko M.A., Ph.D.
Work type: Bachelors
Language: English
Pages: 58
Awards and prizes:
Abstract: This thesis discusses causes of the liquidity crises in Ukraine. The topic is
covered from both theoretical and practical point of view. The discussions
on the policies implemented by Central Bank are presented as well as the
analyses for three liquidity ratios, using time series data and ordinary least
squares. The main hypotheses of the thesis are: there is a positive
correlation between the liquidity level and proportion of foreign capital to
total bank capital; higher capital adequacy ratio leads to better liquidity
ratios; liquidity is procyclic and thus depends positively on the economic
growth of the country and we presume negative correlation between
discount rate and liquidity. In addition to the aforementioned hypotheses,
we also examine the effect of additional explanatory variables such as
inflation, total assets of banking sector, spread between loans and deposits,
ratio of non-performing loans to capital, unemployment rate, returns on
assets and equity, and investment in securities. The quick liquidity ratio,
short-term liquidity ratio, and current ratio are used as dependent variables
and separate model is constructed for each of them.


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