Author/Authors :
Asadollahi, Yahya Department of Accounting - Kermanshah Branch - Islamic Azad University - Kermanshah, Iran , Taherabadi, Ali Asghar Department of Accounting - Kangavar Branch - Islamic Azad University - Kangavar, Iran , Shahvisi, Farhad Department of Accounting - Razi University - Kermanshah, Iran , Kheirollahi, Farshid Department of Accounting - Razi University - Kermanshah, Iran
Abstract :
Banks as one of the most important and crucial economic sectors in each country
play a significant role in economic growth and development and they face various
risks one of which is liquidity risk. Managing liquidity risk is of great importance
and identifying its effective factors is more vital. The present study aims to present
a dynamic model to manage liquidity risk. System dynamics is used to
find a risk making structure and present the most effective solution to
manage it. In this method, by providing a mathematical model, simulating
the results of various scenarios is possible. The results of implementing four
scenarios on the model were simulated and analysed. The results revealed that
reducing legal deposits and nonperforming loans and increasing attraction of deposits
is influential in banks liquidity risk.
