Bank liquidity and exposure to industry shocks: evidence from Ukraine

Jose Arias, Oleksandr Talavera, Andriy Tsapin

Research output: Contribution to journalArticlepeer-review


This paper examines the link between bank liquidity and exposure to industry-level shocks. Using a unique dataset of borrower industry affiliations, we propose a new measure of industry-level shocks calculated at the bank level. We construct bank-specific loan portfolio weights for each industry and apply them to two industry-level indices. Our estimates reveal the negative link between bank liquidity and industry shocks. The sensitivity of liquidity to bank exposure is higher for more liquid, better capitalized, and smaller banks, which may be explained by their ability to displace funds, either for precautionary reasons or for loan financing.

Original languageEnglish
Article number100942
JournalEmerging Markets Review
Publication statusAccepted/In press - 24 Jun 2022

Bibliographical note

Final Version of Record not yet available as of 28/07/2022.

Publisher Copyright:
© 2022


  • Bank liquidity
  • Bank shock exposure
  • Industry-level shocks
  • Lending behaviour

ASJC Scopus subject areas

  • Business and International Management
  • Economics and Econometrics


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