Purpose

The purpose of this paper is to investigate how much liquidity banks create and how liquidity creation changed over time in the MENA countries and to examine the soundness of banks in these countries based on the CAME rating system, in addition to investigating the relationship between CAME ratios and liquidity creation of these banks.

Design/methodology/approach

The study regresses the CAME ratios together with other control variables to model liquidity creation. The robustness of the results is evaluated by using a different measure of liquidity creation and by excluding the observations of the Islamic banks.

Findings

The results show that the CAME rating system, as an indicator of bank soundness, is negatively related to bank liquidity creation. Specifically, capital adequacy, management efficiency and earning ability ratios affect the on-balance sheet components of liquidity creation, while asset quality ratio affects its off-balance sheet component.

Practical implications

The paper offers insights to regulators and banks managers in terms of better understanding of the negative relationship between CAME rating system and bank liquidity creation.

Originality/value

This paper sheds more light on the relationship between bank soundness and liquidity creation by using the ratios of the CAMEL rating system as an indicator of bank strength and soundness.

中文翻译：

---

银行稳健性和流动性创造

目的

本文的目的是调查中东和北非国家流动性银行创造了多少流动性，以及流动性创造随时间的变化，并基于CAME评级系统研究了这些国家中银行的稳健性，此外还研究了CAME比率之间的关系。这些银行的流动性创造。

设计/方法/方法

该研究对CAME比率与其他控制变量进行了回归，以模拟流动性创造。通过使用不同的流动性创造量度并排除伊斯兰银行的观察来评估结果的稳健性。

发现

结果表明，CAME评级系统作为银行稳健性的指标，与银行流动性的产生负相关。具体来说，资本充足率，管理效率和盈利能力比率会影响流动性创造的资产负债表内组成部分，而资产质量比率会影响其资产负债表外组成部分。

实际影响

本文通过更好地了解CAME评级系统与银行流动性创造之间的负面关系，为监管机构和银行经理提供了见识。

创意/价值

通过使用CAMEL评级系统的比率作为银行实力和稳健性的指标，本文更加阐明了银行稳健性与流动性创造之间的关系。