Liquidity risk refers to the risk of the bank being unable to meet any of its obligations at any point of time. Such a risk arises due to mismatch of banks’ assets and liability structure.
One of the important scopes of Asset-liability management is management of liquidity risk. Therefore, measuring and managing liquidity needs are vital for effective operation of Banks and financial institutions.
Liquidity Risk Management in Banking
Теги
Liquidity Risk ManagementLiquidity ManagementRsik ManagementRiskRisk Management in BankingBank ManagementAsset Liability ManagementALMAssets and Liabilities ManagementBankingTreasuryLiquidity GapLiquidityAsset Liability Management CommitteeALCOGap AnalysisFunding GapMismatchAsset liability mismatchterm structureasset liability structurefunding costinvestment returncost of fundprudential limitwarning signaltime bucket
