Trent University Graduate Thesis Collection

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Capital Ratios and Liquidity Creation: Evidence from Canadian Big Six Banks

Year: 2021, 2021
Member of: Trent University Graduate Thesis Collection
Name(s): Creator (cre): Garg, Madhu, Thesis advisor (ths): Zhang, Jie, Degree committee member (dgc): Gessesse, Haile, Degree granting institution (dgg): Trent University
Abstract: <p>Using quarterly data from the six largest Canadian banks, we investigate the relationship between regulatory capital ratio and on-balance sheet liquidity created in the Canadian economy by "Big Six". We find a significant positive relationship between Tier 1 capital ratio and on-balance sheet liquidity creation for Canadian big six banks, implying that large banks in Canada… more