Theoretical Economics Letters

Volume 8, Issue 12 (September 2018)

ISSN Print: 2162-2078   ISSN Online: 2162-2086

Google-based Impact Factor: 1.34  Citations  

Excess Liquidity and Bank Managers’ Remuneration: The Role of Monetary Policy

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DOI: 10.4236/tel.2018.812169    954 Downloads   2,125 Views  Citations

ABSTRACT

This paper investigates the impacts of monetary policy on bank managers’ remuneration in Vietnam and China where excess liquidity is present in the economies. The study argues that excess liquidity provides the condition to conceal risk taken by bank managers, and hence their remunerations are improved. However, the capability of excess liquidity in concealing risk is attenuated during the tightening monetary policy regime. The study extends the relationship between monetary policy and risk taking incentives of bank managers to the context of excess liquidity condition.

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Nguyen, T. , Le, T. and Maheshwari, G. (2018) Excess Liquidity and Bank Managers’ Remuneration: The Role of Monetary Policy. Theoretical Economics Letters, 8, 2673-2681. doi: 10.4236/tel.2018.812169.

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