The Impact of Economic Growth on Bank Liquidity: Case of Tunisia

Liquidity is a measure of the cash and other assets banks have available to quickly pay bills and meet short-term business and financial obligation. In this article we studied the impact of economic growth on bank liquidity. By using a sample of 11 banks quoted in Tunisian stock market for the period ( 2005-2020). We apply a method of general least squares for the regression of variables. We found that economic growth has a positive impact on bank liquidity. That’s means that good economic conditions ameliorate the level of bank liquidity. Therefore banks can meet their financial obligations and increase their investments.

Keywords: liquidity, banks, economic growth, general least square.