Acta academica karviniensia 2015, 15(1):32-43 | DOI: 10.25142/aak.2015.003

LIQUIDITY RISK MANAGEMENT OF BANKS BELONGING TO ERSTE GROUP AND SOCIETE GENERALE GROUP

Tomáš Gongol1, Pavla Klepková Vodová2
1 Slezská univerzita, Obchodně podnikatelská fakulta, Univerzitní nám. 1934/3,733 40 Karviná, Email:gongol@opf.slu.cz
2 Slezská univerzita, Obchodně podnikatelská fakulta, Univerzitní nám. 1934/3,733 40 Karviná, Email:klepkova@opf.slu.cz

The aim of this paper was to compare the strategy of liquidity risk management of banks belonging to Erste Group and Societe Generale Group in the region of Central and Eastern Europe. We have used three liquidity ratios and compared values of these ratios of subsidiary banks, parent banks and corresponding banking sectors. The results confirmed that each bank has own strategy which combines defensive and offensive approaches to liquidity. In terms of sources of funding, subsidiaries are much safer than both parents bank. Concerning the buffer of liquid assets, Societe Generale as a parent bank is much more liquid than its subsidiaries and also than Erste Group Bank and its subsidiaries. Differences between values of all ratios for parent banks, subsidiaries and corresponding banking sectors are statistically significant which is proved by the analysis of variance for a single factor.

Keywords: financial group, liquid assets, liquidity, net interbank position, strategy of liquidity risk management
JEL classification: G01, G21, G32

Received: March 2, 2015; Accepted: May 27, 2015; Published: March 30, 2015  Show citation

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Gongol T, Klepková Vodová P. LIQUIDITY RISK MANAGEMENT OF BANKS BELONGING TO ERSTE GROUP AND SOCIETE GENERALE GROUP. Acta academica karviniensia. 2015;15(1):32-43. doi: 10.25142/aak.2015.003.
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