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Liquidity Risk Management In Banking

Author

Listed:
  • Lect. Ph.D Imola Driga

    (University of Petrosani Faculty of Sciences, Petrosani, Romania)

  • Assoc.Prof. Ph.D Adela Socol

    (“1 Decembrie 1918” University of Alba-Iulia Faculty of Sciences, Alba-Iulia, Romania)

Abstract

The objective of this paper is to provide a global perspective of the liquidity risk from a banking societies‘ viewpoint. Our paper belongs to the technical studies that analyze the concrete way in measuring the liquidity risk at the level of the banking societies from Romania. The study is structured on chapters that present the theoretical background in liquidity risk management and new trends in measuring, monitoring and controlling liquidity risk. Also, the paper contains a study cases part, which presents the actual stage and the challenges of the measuring the liquidity risk. We try to underline the importance of a flexible banking system, which should be able to measure and forecast its prospective cash flows for assets, liabilities, off-balance sheet commitments and derivatives over a variety of time horizons, under normal conditions and a range of stress scenarios, including scenarios of severe stress.

Suggested Citation

  • Lect. Ph.D Imola Driga & Assoc.Prof. Ph.D Adela Socol, 2009. "Liquidity Risk Management In Banking," Revista Tinerilor Economisti (The Young Economists Journal), University of Craiova, Faculty of Economics and Business Administration, vol. 1(13S), pages 46-55, November.
    • Handle: RePEc:aio:rteyej:v:1:y:2009:i:13s:p:46-55
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    File URL: http://feaa.ucv.ro/RTE/013S-07.pdf
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    References listed on IDEAS

    as
    1. Evan Gatev & Til Schuermann & Philip E. Strahan, 2009. "Managing Bank Liquidity Risk: How Deposit-Loan Synergies Vary with Market Conditions," The Review of Financial Studies, Society for Financial Studies, vol. 22(3), pages 995-1020, March.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    liquidity risk; simple net liabilities; cumulated net liabilities; liquidity; rate; average maturities transformation; immediate liquidity;
    All these keywords.

    JEL classification:

    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G33 - Financial Economics - - Corporate Finance and Governance - - - Bankruptcy; Liquidation

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