Why banks hold cash has become a major issue since the 2008 financial crisis demonstrated that cash holding is a major determinant in banks? chances of survival. This article investigates the determinants of bank cash holding by using international data for the period 1981-2014. Using a large sample, we document a secular increase in bank cash holding over a 35-year period. We find evidence that the cash holding structure varies over time in the banking industry in contrast with the nonbanking sector.JEL classification: C3; G21; G28.Keywords: Liquidity creation; Cash holding motives; Banks.
Auteurs :Bancel Franck Extrait de la revue BMI 146