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How does assets-liabilities management affects the profitability of banks?

The Journal of Accounting and Management

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Title How does assets-liabilities management affects the profitability of banks?
 
Creator TRENCA, Ioan; Babes-Bolyai University, FSEGA
COCIUBA, Mihail-Ioan; Babes-Bolyai University, FSEGA
 
Subject canonical correlation, banks, financial crisis
 
Description The economic crisis has affected the stability of the financial institutions (banks) and the instability from the banking sector affected the real economy. Some banks were affected more than others and in this paper we analyze the stability and profitability of banks from the point of the asset-liability management.  Assets-liabilities management (ALM) is the management of risk at bank level, the structure of the assets and liabilities of the banks may show which are the differences between the "good banks" and "bad banks". The main goal of this paper is to analyze the asset-liability management in banks for the 2004-2011 period, using a panel of over 30 banks. The analysis is carried using the canonical correlations  (Hotelling, 1936), while in the case of the simple correlation we test for a linear dependency between two variables, canonical correlation test the interdependence between two sets of variables (the structure of assets and liabilities.
 
Publisher The Journal of Accounting and Management
 
Contributor —
 
Date 2015-01-22
 
Type Peer-reviewed Article
 
Format application/pdf
 
Identifier http://journals.univ-danubius.ro/index.php/jam/article/view/2714
 
Source The Journal of Accounting and Management; Vol 4, No 3 (2014): JAM
 
Language en
 
Rights The author fully assumes the content originality and the holograph signature makes him responsible in case of trial.