Operational resilience, macroeconomic uncertainty and exposure to liquidity shocks among US commercial banks

Purpose The purpose of this study is to examine how operational resilience, macroeconomic dynamics and deficiencies associated with bank operations ultimately influence exposure to liquidity shocks among US commercial banks. Design/methodology/approach Data for the empirical inquiry were compiled from relevant sources from 2012 to 2022, and the empirical estimates were performed using the two-step system generalized method of moments (GMM) framework and the dynamic panel threshold estimator by Seo et al. (2019), respectively. Findings Reported findings suggest that bank internal resilience and growth in net interest margins help to minimize commercial banks’ exposure to liquidity shocks, while exposure to loan losses, volatile return on assets position, and volatile deposit-to-total-asset ratio foster exposure to liquidity shocks. Further results suggest that gross domestic product growth minimizes exposure to liquidity shocks among commercial banks in the USA, while consumer behavior uncertainty increases vulnerability to liquidity shocks among US commercial banks. Further empirical estimates verified the existence of a significant deposit-to-total asset threshold of 0.803, indicating the possibility of nonlinear interactions in how key variables examined influence exposure to liquidity shocks among US commercial banks. Originality/value The empirical analyses pursued in this study offer a different perspective on bank liquidity issues, with emphasis on the concept of exposure to liquidity shocks compared to related studies; developed study-specific constructs developed allow this study to examine interactions not found in existing studies.