Lebanese banks face liquidity risks impacting economy and country stability.
The article discusses the importance of liquidity in Lebanese commercial banks and how it affects their ability to meet financial obligations. Banks need to balance holding liquid assets to manage risk with the opportunity cost of lower returns. The financial crisis highlighted the need for better liquidity management, leading to new guidelines and requirements for banks. The study aims to identify the factors influencing bank liquidity in Lebanon, a country where banks play a significant role in the economy. The research reviews the literature, analyzes data, and presents empirical determinants of bank liquidity.