Journal articles: 'Liquidity risk management'

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Anisoara Niculina, Daschievici. "Liquidity Risk Management." Annales Universitatis Apulensis Series Oeconomica 3, no. 8 (July 31, 2006): 166–69. http://dx.doi.org/10.29302/oeconomica.2006.8.3.30.

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Milosevic, Milos. "Liquidity risk management." Bankarstvo 43, no. 1 (2014): 12–29. http://dx.doi.org/10.5937/bankarstvo1401012m.

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Müseyib qızı Babazadə, Sehrayi. "Liquidity risk and liquidity regulation management processes." SCIENTIFIC WORK 76, no. 3 (March 18, 2022): 101–6. http://dx.doi.org/10.36719/2663-4619/76/101-106.

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İstənilən bankın idarə olunmasının ən mühüm vəzifələrindən biri müvafiq likvidlik səviyyəsini təmin etməkdir. Bank münasib qiymətə cəlb oluna bilən vəsaitlərə və məhz onlara ehtiyac olduğu anda çıxış imkanına malik olduğu halda likvid hesab olunur. Bu o deməkdir ki, bank ya lazımi miqdarda likvid vəsaitə malikdir, ya da onları kreditlər və ya aktivlərin satışı ilə tez əldə edə bilər. Rusiyada başlayan maliyyə böhranı bankın likvidliyinin tənzimlənməsinə xüsusi aktuallıq verdi. Dinamik artım nümayiş etdirmiş bir çox Rusiya bankları yüksək dəyişkən maliyyə şəraitində likvidlik problemini həll edə bilməyiblər və hazırda çətin vəziyyətdədirlər. Açar sözlər: bank, likvidlik, likvidliyin tənzimlənməsi Sehrayi Museib Babazadeh Liquidity risk and liquidity regulation management processes Abstract One of the most important tasks of any bank management is to ensure an appropriate level of liquidity. A bank is considered liquid if it has funds that can be attracted at a reasonable price and have access to them when they are needed. This means that the bank either has the necessary amount of liquid funds or can obtain them quickly through loans or the sale of assets. The financial crisis in Russia has given special importance to the regulation of the bank's liquidity. Many Russian banks, which have shown dynamic growth, have not been able to solve their liquidity problems in a highly volatile financial environment and are currently in a difficult position. Key words: bank, liquidity, liquidity regulation

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Holmstrom, Bengt, and Jean Tirole. "Liquidity and Risk Management." Journal of Money, Credit and Banking 32, no. 3 (August 2000): 295. http://dx.doi.org/10.2307/2601167.

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Gârleanu, Nicolae, and Lasse Heje Pedersen. "Liquidity and Risk Management." American Economic Review 97, no. 2 (April 1, 2007): 193–97. http://dx.doi.org/10.1257/aer.97.2.193.

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Rozhkov, Y. V. "THE USE OF LIQUIDING AS A BANK MANAGEMENT CATEGORY." Vestnik of Khabarovsk State University of Economics and Law, no. 3 (January 20, 2021): 61–64. http://dx.doi.org/10.38161/2618-9526-2020-3-12.

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The article describes the theoretical problems related to the use of «bank liquidity» category. «Function» category is revealed in relation to the liquidity of credit institutions. It is proposed to introduce «liquiding» category into scientific and practical circulation as a quintessence that combines the concepts of «liquidity», «liquidity management», «liquidity risk management»

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Hlebik, Sviatlana, and Lara Ghillani. "Management Strategies for Bank’s Liquidity Risk." International Journal of Economics and Finance 9, no. 6 (May 15, 2017): 98. http://dx.doi.org/10.5539/ijef.v9n6p98.

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Liquidity risk management is today a major focus for regulators, due to increasing complexity of financial markets and concerns related to inadequate identification and managing liquidity risk, exacerbated by the financial crisis. Because the financial market is increasingly interconnected, a liquidity shortfall at a single institution can have system-wide consequences.This paper aims to provide analytical explanations of how important decisions made by bank managers can influence the capability of an institution to finance increases in assets and meet their commitments without impairing cash flow. Banks are particularly susceptible to liquidity risk because the maturity transformation from short-term deposits into long-term loans is one of their key business activity. Further, there can be uncertainties in cash-flow in the external occurrences and agents' behavior. Skillful liquidity risk management is essential, and the present work analyses impact of some management strategies on Basel III liquidity ratios.

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T. T. Tran, Tu, Yen T. Nguyen, Thuy T.H. Nguyen, and Long Tran. "The determinants of liquidity risk of commercial banks in Vietnam." Banks and Bank Systems 14, no. 1 (February 26, 2019): 94–110. http://dx.doi.org/10.21511/bbs.14(1).2019.09.

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This research identifies factors that explain the liquidity of commercial banks in the Vietnam banking system from 2010 to 2015. Using the OLS regression method for analysis, it was found that: the interbank market helps commercial banks improve their liquidity; the larger the loan size, the higher the liquidity risk; good credit risk management has a positive impact on liquidity risk management; and long-term interest rate is negatively related to the liquidity of commercial banks. The research also makes recommendations on liquidity risk management policies to banks and policy-makers from the Government and the State Bank of Vietnam.

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Rudhani, Leonora Haliti, and Driton Balaj. "Management of Liquidity Risk and the Banking Activity." International Journal of Finance & Banking Studies (2147-4486) 8, no. 2 (July 20, 2019): 01–08. http://dx.doi.org/10.20525/ijfbs.v8i2.299.

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The banking sector in Kosovo continues to have a high level of sustainability and financial stability. Two substantial components for the stability of the banking system appear to be liquidity and liquidity risk. The purpose of this paper is to analyze liquidity management in Kosovo's commercial banks through liquidity risk indicators from 2008 to 2017. By comparing the methodology of the data presented, the study will assess the state of management of the liquidity risk of commercial banks. From 2008 until now, commercial banks in Kosovo have had liquidity reserves at a level higher than the level required by CBK, which means that exposure to liquidity risk was minimal.

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Karanović, Goran, Bisera Karanović, and Martina Gnjidić. "Liquidity risk management: practice among Croatian firms." Zbornik Veleučilišta u Rijeci 6, no. 1 (2018): 81–97. http://dx.doi.org/10.31784/zvr.6.1.11.

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The main purpose of this paper is to explore the practice of liquidity risk management of Croatian business entities. The analysis is based on a survey of 62 business entities in Croatia. The authors investigate the existence of risk management and liquidity risk management measures among the surveyed business entities. The respondents’ knowledge of management, their use of indicators and methods for the management of liquidity risk, in addition to the cited reasons for implementation of liquidity risk measures were also subject to examination. Furthermore, the authors investigate the importance of liquidity management in business. The analysis reveals that Croatian business entities have neither sufficient knowledge regarding the majority of financial indicators, nor they tend to use liquidity management plans. Consequently, the survey’s findings indicate that the overall level of financial knowledge of Croatian managers is inadequate. This can, thus, be identified as one of the reasons for the traditionally high number of illiquid business entities in the market. Finally, this paper provides academia and policymakers with new revelations concerning the management of liquidity risk among business entities in Croatia.

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Valipour, Hashem, and Mostafa Sohouli Vahed. "Risk Management and Forecasting Macro-Variables Influences on Bank Risk." International Journal of Business and Management 12, no. 6 (May 18, 2017): 137. http://dx.doi.org/10.5539/ijbm.v12n6p137.

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Nowadays banks, as the most important component ofmoney market, are playing a very important role in country’s economy. By developing money markets, banking and financial institutes’ activities it is extensively developed and with no doubts economic development is not possible without considering the role of banking and money markets. By virtue of special and sensitive role of banks in Iran economic system, any shock, disturbances and/or ineffectiveness in economic systems directly effect on banks’ and financial institutes’ performance as well as phenomenon such as high inflation and/or price shocks and fluctuations in other markets such as currencies shall directly and indirectly effect on banks’ risk and profitability. Hence in this paper the effects of economic macro variables on capital adequacy, liquidity risk and credit risk of banks have been reviewed. The results show that there is a positive and significant relationship between gross domestic product (GDP), petroleum revenue, and exchange rate oncapital adequacy of banks. But the effects of liquidity and inflation on capital adequacy of banks are negative and significant which means it causes decreasing of capital adequacy of banks. Increasing in the variables of petroleum revenue, liquidity and inflation result in increasing of liquidity risk and vice versa the increasing in variables of GDP and exchange rate decreased the liquidity risk. Petroleum revenue, liquidity and inflation increments cause increasing in banks’ credit risk as well as GDP and exchange rate increments result in decreasing in banks’ credit risk.

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Gongol, Tomáš, and Pavla Vodová. "Liquidity Risk Regulation." Financial Assets and Investing 5, no. 1 (January 31, 2014): 7–21. http://dx.doi.org/10.5817/fai2014-1-1.

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One of the key characteristics of the global financial crisis was the inaccurate and ineffective liquidity risk management. As usual after the crisis, some thoughts about the need for more appropriate liquidity risk regulation emerged. The aim of this paper is therefore to characterize the development of liquidity risk regulation. First part of the paper characterizes reasons for liquidity risk regulation. The second section describes the liquidity risk regulation before the financial crisis. Then we focus on the current level of legislation in the Visegrad Countries and also on prepared changes which will arise from the Basel III rules

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Abdo, Mai M., and Ibrahim A. Onour. "Liquidity Risk Management in Full-Fledged Islamic Banking System." Management and Economics Research Journal 6 (2020): 1. http://dx.doi.org/10.18639/merj.2020.990012.

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This study aims to assess the determinants of liquidity risk in the full-fledged Islamic banking system of Sudan, using panel data regression. The dependent variable in this research is the liquidity risk, which is determined as the extreme excess or extreme shortage of liquidity in each bank, based on the VaR approach, and the independent variables are bank size, investment, profit, and the budget deficit during the period 2012-2016. The authors’ findings indicate the bankspecific variables such as the size, investment, and profit are statistically significant, whereas the budget deficit variable is negatively associated with liquidity risk but is insignificant. The insignificance of the budget deficit variable is an indication of the government reliance on its deficit financing on debt financing, i.e., excessive money creation, as contrary to equity financing. Also indicated in the paper is that the investment variable has a positive and significant effect on liquidity risk, indicating that Islamic banks’ investment portfolios are dominated by short-term securities (sikook). This result supports the findings in the literature that investment portfolios in Islamic banks are likely to be dominated by short-term investment securities as a result of the absence of risk-hedging tools in the Islamic banking system, in general. The finding in the paper also indicates a positive and significant sign of profit coefficient with liquidity risk, which is similar to the positive association between higher risk and higher earnings relationships portrayed in the literature of corporate finance. The effect of the size indicator on liquidity risk reveals a positive and significant association, implying that larger banks are more likely to face liquidity risks of shortage as well as excess liquidity.

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Brunnermeier, Markus K., and Motohiro Yogo. "A Note on Liquidity Risk Management." American Economic Review 99, no. 2 (April 1, 2009): 578–83. http://dx.doi.org/10.1257/aer.99.2.578.

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Chakraborty, Biplab. "Liquidity Stress Testing a Tool for Integrated Liquidity Risk Management." Management Accountant Journal 55, no. 10 (October 31, 2020): 68. http://dx.doi.org/10.33516/maj.v55i10.68-72p.

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Permatasari, Ika. "Does corporate governance affect bank risk management? Case study of Indonesian banks." International Trade, Politics and Development 4, no. 2 (October 23, 2020): 127–39. http://dx.doi.org/10.1108/itpd-05-2020-0063.

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PurposeThe purpose of this study is to examine the relationship between corporate governance and risk management of Indonesian banks.Design/methodology/approachImplementation of good corporate governance is measured by good corporate governance composite rating, which is the result of bank's self-assessment. Bank risk managements are measured by market risk, credit risk, liquidity risk and operational risk.FindingsThe study results showed that good corporate governance implementation in Indonesia was able to influence bank risk. There were differences in credit risk, liquidity risk and operational risk in banks with different governance ratings, but not at market risk.Originality/valueThe effectiveness of risk management and good corporate governance implementation is needed to enable banks to identify problems early, to follow up on rapid improvements and to be more resilient to crises. This study is an analysis of the relationship between corporate governance and banks' risk management in Indonesia. In particular, risk management is measured by four risks: market risk, credit risk, liquidity risk and operation risk.

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Bello, Nabil, Aznan Hasan, and Buerhan Saiti. "The mitigation of liquidity risk in Islamic banking operations." Banks and Bank Systems 12, no. 3 (October 4, 2017): 154–65. http://dx.doi.org/10.21511/bbs.12(3-1).2017.01.

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The purpose of this paper is to discuss the issues and challenges of liquidity risk management in Islamic banks. At the same time, the authors are going to identify the sources of liquidity risk in Islamic banks and the common instruments used to mitigate liquidity mismatches in both sides of their balance sheets. The study is a qualitative study that uses secondary sources of data to describe and analyze risk mitigation in the Islamic banking context. Data were collected from libraries by referring to books, journals from both online and offline sources. The research objectives were addressed by critically analysing various issues from both the Islamic principles and contemporary applications. The authors found that Islamic liquidity management is an important building block for stable and efficient banking. Even though there are several attempts, for example, i) organized tawarruq (commodity murabahah), ii) salam sukuk and iii) short-term ijarah sukuk, to find solutions to the incessant problems of liquidity faced by majority of Islamic banks, there are still several underlying problems such as i) in terms of deficiency in infrastructure especially in countries where Islamic finance is still at an early stage, ii) lack of hedging instruments and iii) Shariah restrictions on some instruments. Regulatory bodies should come up with more innovative practices of Islamic liquidity management to solve unresolved theoretical issues and also meeting market requirements for liquidity.

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Claassen, Stephan, and J. H. Van Rooyen. "Bank liquidity risk management: A South African survey to determine future change." Risk Governance and Control: Financial Markets and Institutions 2, no. 3 (2012): 33–53. http://dx.doi.org/10.22495/rgcv2i3art3.

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In 2008 the global financial system and, more particularly, the world banking system suffered a financial crisis worse than any earlier crises. The financial crunch brought to light that liquidity risk management in banks poses a problem, and that the world’s financial institutions will have to change their current practices as it relates to this risk. Apart from the importance of liquidity and the risk that it may cause, the integrated nature of all risks made banks more aware of the fact that none of these risks can be managed in isolation. For various reasons, South African banks were not as exposed to the problems experienced in the global context. However, SA banks may have learned new lessons from the crisis and may plan to change the way they manage liquidity risk in particular, in the future. In order to determine how SA banks perceive liquidity management and liquidity risk, a survey of all SA banks was carried out. The majority of respondents indicated that the financial crisis reminded them of the importance of liquidity risk management in the South African banking system as well as the global banking system. The majority of banks rate all the liquidity risk management tools as extremely important and rate corporate governance, strategy, policy and risk tolerance, liquidity risk measurement and intra-day liquidity as their number one priority. Basel III is generally perceived as being effective, but 30% of respondents perceived it as neither effective nor ineffective, because South African banks already have similar measures in place.

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Jasienė, Meilė, Jonas Martinavičius, Filomena Jasevičienė, and Gražina Krivkienė. "BANK LIQUIDITY RISK: ANALYSIS AND ESTIMATES." Business, Management and Education 10, no. 2 (December 20, 2012): 186–204. http://dx.doi.org/10.3846/bme.2012.14.

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In today’s banking business, liquidity risk and its management are some of the most critical elements that underlie the stability and security of the bank’s operations, profit-making and clients confidence as well as many of the decisions that the bank makes. Managing liquidity risk in a commercial bank is not something new, yet scientific literature has not focused enough on different approaches to liquidity risk management and assessment. Furthermore, models, methodologies or policies of managing liquidity risk in a commercial bank have never been examined in detail either. The goal of this article is to analyse the liquidity risk of commercial banks as well as the possibilities of managing it and to build a liquidity risk management model for a commercial bank. The development, assessment and application of the commercial bank liquidity risk management was based on an analysis of scientific resources, a comparative analysis and mathematical calculations.

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Puneri, Atharyanshah, Naeem Suleman Dhiraj, and Hafiz Benraheem. "A SUCCINCT ANALYSIS OF MITIGATING LIQUIDITY RISK IN ISLAMIC BANKS IN THE LIGHT OF LIQUIDITY AND RISK MANAGEMENT PRINCIPLES." International Journal of Islamic Business Ethics 4, no. 1 (July 25, 2019): 527. http://dx.doi.org/10.30659/ijibe.4.1.527-539.

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Liquidity management has been incessantly challenging for the financialinstitutions and especially Islamic financial institutions due to their nature of business. The�convoluted nature of liquidity management impedes the task of Islamic banks in managing�their liquidity efficiently. Given the intricacies of the subject matter, this paper delves into�elaborating the key aspects of liquidity management; subsequently, discusses the�consequences of poor liquidity management and problems inherent in managing the latter by�analyzing the real-life failure of Islamic financial institution as a result identifying the issues that could possibly jeopardize the existence of the Islamic banks. Finally, equipping the�readers with tools to mitigate the liquidity risk.

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Rahma Dewi, Wulan. "Management of Risk Management on Banking Financial Performance." Jurnal Keuangan dan Perbankan (KEBAN) 1, no. 1 (November 4, 2021): 52–64. http://dx.doi.org/10.30656/jkk.v1i1.3999.

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Risk management is very important for companies. The purpose of this study is to examine and analyze the impact of credit risk, market risk, operating efficiency, capital, and liquidity on bank financial performance. This research uses a quantitative research design. The data used in this study is based on private banks listed on the Indonesia Stock Exchange (IDX) for the next three years. The type of data is secondary data. Technical analysis using multiple linear regression. The results show that market risk and operating efficiency have a significant effect on the financial performance of the bank. Meanwhile, credit risk, capital, and liquidity have no significant effect on the bank's financial performance

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Carsamer, Emmanuel, Anthony Abbam, and Yaw N. Queku. "Bank capital, liquidity and risk in Ghana." Journal of Financial Regulation and Compliance 30, no. 2 (October 24, 2021): 149–66. http://dx.doi.org/10.1108/jfrc-12-2020-0117.

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Purpose Capital, risk and liquidity are the vitality of the banking industry, which can improve the efficiency of banking and promote the efficiency of resource allocation. The purpose of this study is to examine how Basel III new liquidity ratios affect bank capital and risk adjustments and how banks respond to the new liquidity rules. Design/methodology/approach The authors adopted the system generalized method of moments (GMM) to examine how Basel III new liquidity ratios affect bank capital and risk adjustments and how banks respond to the new liquidity rules. Based on the call reports data from banks, GMM was used to test the hypotheses that new liquidity ratios affect bank capital and risk adjustments, as well as how banks respond to the regulation. Findings The results indicate banks targeted capital, risk and liquidity and simultaneously coordinate short-term adjustments in capital and risk. New liquidity measures enable banks to coordinate risk and liquidity decisions. Short-term adjustments in new liquidity rules inversely impact bank capital. Short-term adjustments in new liquidity rules inversely impact bank capital and capital adjustments adversely affect changes in the liquidity coverage ratio (LCR). Research limitations/implications The primary results revealed that Ghanaian banks simultaneously coordinate and target capital, risk exposure and liquidity level. Also, capital adjustments positively influence risk adjustments and vice versa while bidirectional negative coordination exists between bank capital and risk on one hand and liquidity on the other hand. Short-term adjustments in new liquidity rule inversely impact bank capital and capital adjustments adversely affect changes in the LCR. The findings partially confirm the theoretical predictions of Repullo (2005) regarding the negative links between capital, risk and liquidity but the authors have higher capital induces higher risk. Practical implications Banks should balance off their targeted risk and liquidity in order not to sacrifice capital accumulation for liquidity. Originality/value This research offers new contributions in the research of bank management of capital and liquidity toward banks during a financial crisis from a theoretical perspective and trust management from an applicative perspective.

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Zhou, Yi, Weili Xia, and Shengping Peng. "Analysis of an Optimal Model for Liquidity Management of Financial Assets Using an Intelligent Scheduling Approach." Journal of Mathematics 2021 (December 21, 2021): 1–10. http://dx.doi.org/10.1155/2021/7267667.

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This paper adopts the intelligent scheduling method to conduct an in-depth study and analysis on the optimization of financial asset liquidity management model, elaborates and analyzes the liquidity risk management theory of commercial banks, and reviews the progress of liquidity risk management research in domestic and foreign academia as the theoretical basis of this paper. After that, we analyze the liquidity risk management of Anhui Tianchang Rural Commercial Bank from both qualitative and quantitative levels and further review and analyze the problems and causes. Finally, the full research is summarized and reviewed, theoretical and practical insights are discussed and analyzed, and future liquidity risk management research priorities and directions are elaborated. Based on the analysis results, the problems of the bank in liquidity risk management are described one by one, and further deep-seated cause discovery is carried out to summarize the problems of liquidity risk management which exist in the bank’s operation process due to the lack of liquidity risk management, unbalanced asset, and liability allocation, as well as weak emergency management capability, insufficient day-to-day liquidity monitoring, and lack of professional talents. For the problems and causes of the study, effective suggestions on how to strengthen the bank’s liquidity risk management in multiple aspects are proposed. It is hoped that, by improving the bank’s liquidity risk management and reducing the chance of liquidity risk occurrence, the bank’s sustainable development can be enhanced, and it is also hoped that it can provide some reference for the liquidity risk management of similar rural small- and medium-sized financial institutions.

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PERMATASARI, IKA. "Mencegah Gejolak Keuangan dengan Manajemen Risiko Likuiditas Perbankan." BISMA (Bisnis dan Manajemen) 4, no. 2 (June 6, 2018): 145. http://dx.doi.org/10.26740/bisma.v4n2.p145-153.

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Sound liquidity risk management is needed to deal with the impact of liquidity risk that can bring contagion effects that threatens the financial system stability of a country. This study aims to analyze the necessary issues in liquidity risk management in Indonesia, which emphasized on four pillars. The main pillars of the bank's liquidity risk management include active oversight board of commissioners and directors; policies, procedures, and liquidity risk limits; liquidity risk management process; and internal control systems.

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S/O Manual, Vikneswaran, Chin Hui Shi, Siti Zaleha Abdul Rashid, and Siti Zaleha Abdul Rashid. "Liquidity Risk Management and Financial Performance of Conventional Commercial Banks in Malaysia." International Journal of Psychosocial Rehabilitation 24, no. 02 (February 12, 2020): 1064–83. http://dx.doi.org/10.37200/ijpr/v24i2/pr200410.

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Abdel Megeid, Nevine Sobhy. "Liquidity risk management: conventional versus Islamic banking system in Egypt." Journal of Islamic Accounting and Business Research 8, no. 1 (February 13, 2017): 100–128. http://dx.doi.org/10.1108/jiabr-05-2014-0018.

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Purpose This research aims to analyze and compare the effectiveness of liquidity risk management of Islamic and conventional banking in Egypt to ascertain which of the two banking systems are performing better. Design/methodology/approach A sample of six conventional banks (CBs) and two Islamic banks (IBs) in Egypt was selected. Using the liquidity ratios, the investigation involves analyzing the financial statements for the period of 2004-2011. The data were obtained from Bank scope database. Findings The research found that in Egypt, CBs perform better in terms of liquidity risk management than IBs. The liquidity risk management significant differences between IBs and CBs could be attributed more cash availability to CBs than to IBs, in addition, Egyptian Central Bank regulations on capital and liquidity requirements for IBs disconcert IBs’ performance. Practical implications This research facilitates the bankers, academician, scholars and bankers to have an alluded picture about Egyptian banking developments in liquidity risk management. The results can be used by bankers’ policy decision-makers to improve and enhance their consideration for liquidity risk management. Originality/value This research covers a period and a country that compares CBs’ and IBs’ liquidity risk management. Its value is attributed to the increasing differentiation between CBs and IBs.

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Adam-Müller, Axel F. A., and Argyro Panaretou. "Risk management with options and futures under liquidity risk." Journal of Futures Markets 29, no. 4 (April 2009): 297–318. http://dx.doi.org/10.1002/fut.20362.

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Wu, Ho-Mou, and Ren-Raw Chen. "Liquidity Risk, Reform of Bank Regulation, and Risk Management." Journal of Banking & Finance 45 (August 2014): 59–60. http://dx.doi.org/10.1016/j.jbankfin.2014.05.019.

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Ratnovski, Lev. "Liquidity and Transparency in Bank Risk Management." IMF Working Papers 13, no. 16 (2013): 1. http://dx.doi.org/10.5089/9781616356774.001.

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Walker, G. "Liquidity risk management--policy conflict and correction." Capital Markets Law Journal 4, no. 4 (September 3, 2009): 451–61. http://dx.doi.org/10.1093/cmlj/kmp032.

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Asongu, Simplice A. "Post‐crisis bank liquidity risk management disclosure." Qualitative Research in Financial Markets 5, no. 1 (April 5, 2013): 65–84. http://dx.doi.org/10.1108/17554171311308968.

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Matiş, Eugenia Ana, and Crenguţa Alina Matiş. "Liquidity Risk Management in Post-Crisis Conditions." Procedia Economics and Finance 32 (2015): 1188–98. http://dx.doi.org/10.1016/s2212-5671(15)01496-3.

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Ippolito, Filippo, José-Luis Peydró, Andrea Polo, and Enrico Sette. "Double bank runs and liquidity risk management." Journal of Financial Economics 122, no. 1 (October 2016): 135–54. http://dx.doi.org/10.1016/j.jfineco.2015.11.004.

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Ratnovski, Lev. "Liquidity and transparency in bank risk management." Journal of Financial Intermediation 22, no. 3 (July 2013): 422–39. http://dx.doi.org/10.1016/j.jfi.2013.01.002.

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Inegbedion, Henry, Bello Deva Vincent, and Eseosa Obadiaru. "Risk Management and the Financial Performance of Banks in Nigeria." International Journal of Financial Research 11, no. 5 (September 22, 2020): 115. http://dx.doi.org/10.5430/ijfr.v11n5p115.

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The study examined “risk management and financial performance of banks in Nigeria” with focus on commercial banks. The broad objective of the study was to ascertain the effect of risk asset management on the optimal financial performance of commercial banks in Nigeria. The study is a longitudinal survey, so the ex-post facto research design was applied. Research data were analysed using generalized method of moments (GMM) and vector Error Correction Model, after testing and adjusting the data for stationarity and Cointegration.The research findings were: Banks’ profitability is significantly influenced in the short run by liquidity risk and in the long-run by credit risk, capital adequacy risk, leverage risk and liquidity risk. Furthermore, profitability measured by ROaA was found to be positively related to liquidity risk but negatively related credit risk. Arising from the findings, there is the need for effective risk management, especially credit, capital adequacy, leverage and liquidity risks, to enhance the profitability of banks. By helping to enhance the going concern of banks, risk management will help to reduce retrenchment and unemployment and hence help to forestall the attendant social vices.

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Amin, Syajarul Imna Mohd, Aisyah Abdul-Rahman, and Nurhafiza Abdul Kader Malim. "Liquidity risk and regulation in the Organization of the Islamic Cooperation (OIC) banking industry." Asian Academy of Management Journal of Accounting and Finance 17, no. 2 (December 10, 2021): 29–62. http://dx.doi.org/10.21315/aamajaf2021.17.2.2.

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The recurring crises have evidenced poor liquidity risk management and ineffective regulation in banking. Consequently, banking regulations have undergone continuous reforms to bolster stability in the banking system. Nonetheless, theoretical and empirical evidence provide conflicting results that warrant comprehensive research, particularly for emerging Islamic banking. This study examines the role of banking regulation on the liquidity risk of 245 conventional banks and 68 Islamic banks from selected 14 Organization of the Islamic Cooperation (OIC) from 2000 to 2017 utilising the dynamic panel GMM (generalized method of moments) technique. We measure liquidity risk using the Net Stable Funding Ratio (NSFR) and the total financing-to-total deposits and short-term funding (LDEP). Meanwhile, the regulatory measures are asset restriction (AR), private monitoring (PM), supervisory power (SP) and capital requirements (CR). The findings suggest that regulation has a limited impact on bank liquidity risk. The CR supports the value creation of regulation through the reduction in banks’ liquidity risks, while PM and SP are agency costs of regulation that lead to higher liquidity risks. The impact of CR is lower on liquidity risk in Islamic banking than conventional ones, probably due to limited Islamic liquidity risk management facilities. Thus, regulators should strengthen Islamic liquidity risk instruments and markets to facilitate Islamic banking growth.

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Das, Pradip Kumar. "Liquidity Management: An Empirical Study." International Business & Economics Studies 4, no. 3 (August 21, 2022): p74. http://dx.doi.org/10.22158/ibes.v4n3p74.

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Efficacious liquidity management is cardinal for being of an organization. Diverse components of current assets and current liabilities should be managed in such manner that an organization is able to keep appropriate liquidity structure. Adequate liquidity capacitates an organization to meet its obligations in time. Efficient liquidity management impact firm’s risk, return and share prices, and surmises its success or failure. Liquidity management is credited as a lifeline of every concern. Need for dexterous liquidity management has, thus, become prime lately. The study developed on idiolect of disparate indices reveals that the overall liquidity position of the selected company, Titan Company Ltd. is not impressive. The paper also offers few suggestions to elevate certain facets stirring healthy liquidity management.

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Dahir, Ahmed Mohamed, Fauziah Binti Mahat, and Noor Azman Bin Ali. "Funding liquidity risk and bank risk-taking in BRICS countries." International Journal of Emerging Markets 13, no. 1 (January 15, 2018): 231–48. http://dx.doi.org/10.1108/ijoem-03-2017-0086.

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Purpose The purpose of this paper is to examine the effects of funding liquidity risk and liquidity risk on the bank risk-taking. Design/methodology/approach This study employs a system generalized method of moments (GMM) estimation technique and a sample of 57 banks operating in BRICS countries over the period from 2006 to 2015. Findings The results reveal that liquidity risk has a significant and negative effect on the bank risk-taking, indicating that a decrease in liquidity risk contributes to higher bank risk-taking. The study also reveals that funding liquidity risk has the substantial impact on bank risk-taking, suggesting lower funding liquidity risk results in higher bank risk-taking. These results are consistent with prior assumptions. Research limitations/implications The implications of this study highlight the fact that liquidity risk is a risk factor which drives the potential bank default, of which banks tend to take more risks when higher funding liquidity exists. Practical implications This study offers a number of valuable implications for the policy makers as well as practitioners. The policy makers should take into account better liquidity risk management framework aimed at preventing banks from taking excessive risks. Bank executives must pay more attention on how banks could hold more liquid securities and cash. Less risk-taking reduces higher borrowing costs undermining earnings through imposing taxes on corporate. Originality/value This work uncovered that liquidity risk per se is an important and previously unidentified risk factor, specifically its effects on bank risk-taking and contributes to the view in support of holding more liquid securities than the past.

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Wauters, E., F. van Winsen, Y. de Mey, and L. Lauwers. "Risk perception, attitudes towards risk and risk management: evidence and implications." Agricultural Economics (Zemědělská ekonomika) 60, No. 9 (September 30, 2014): 389–405. http://dx.doi.org/10.17221/176/2013-agricecon.

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The comprehensive risk analysis of a business such as farming entails questions on what is at stake, how important is the risk concern and how to deal with it. We performed a sequential mixed method, with the in-depth interviews in the first stage (n = 35), followed by a survey on the Flemish FADN (n = 614) in the second, to investigate the farmers’ risk perception, the attitudes towards risk and the perceived usefulness of the risk management strategies. We find that, rather than the short-term volatility in prices, the longer term co-evolution of expenses versus receipts is of a major concern to farmers, next to the land availability and the policy risks. Farmers are shown to be only slightly risk averse, rather risk neutral even. Further, our results suggest that farmers do not consider extensively studied risk management strategies such as contracts, futures and insurances, a valid option for their farm, and put more faith in internal strategies such as the debt management, the liquidity management and diversification. Last, risk management is to a substantial degree performed at the household level, rather than at the farm level, with strategies such as cutting the private expenses and the off-farm employment. These results hardly differ according to the farm and farmer characteristics.  

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Riyan Puteri, Anyssa. "THE INFLUENCE OF FIRM SIZE, CAPITAL ADEQUACY, AND PROFITABILITY ON LIQUIDITY RISK MANAGEMENT OF INDONESIA ISLAMIC BANKING." Journal of Business Economics 23, no. 2 (2018): 114–29. http://dx.doi.org/10.35760/eb.2018.v23i2.1817.

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One of the problems facing sharia banking is liquidity risk management. Liquidity risk management in Islamic banking faces greater challenges because they need to be in accordance with Sharia. This research aims to determine the influence of firm size, capital adequacy, and profitability with return on asset and return on equity as proxies, on Indonesian Islamic banking liquidity risk management which is listed in Bank Indonesia in the period 2010-2014. This research uses panel data from eleven Islamic banks. The dependent variable in this research is liquidity risk and the independent variables are firm size, capital adequacy, and profitability with return on asset and return on equity as proxies. The method of analysis in this research uses descriptive statistics, regression model selection, classic assumption test, and hypothesis test. The results show that firm size, capital adequacy, and profitability with return on asset and return on equity as proxies simultaneously affect liquidity risk management, where partially return on equity does not affect liquidity risk management. Keywords: Capital Adequacy, Firm Size, Islamic Banking, Liquidity Risk Management, Profitability

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Alamin, Sara. "The Impact of Financial Risk Management on the Liquidity of Stocks in the Saudi Capital Market (Applied to Islamic Banks)." Journal of Human and Administrative Sciences, no. 28 (September 1, 2022): 01–28. http://dx.doi.org/10.56760/10.5676/rqsd3305.

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This study aimed to identify the impact of financial risk management on the liquidity of stocks in the Saudi capital market, by looking at Islamic banks listed on the Saudi stock market and the risk management methods they employ, as well as to determine the types of financial risks that hinder the activities of such banks. After reviewing previous studies, it was hypothesized that there is a statistically significant relationship between financial risk management and stock liquidity. The study relied on published data and financial statements of four Islamic banks listed in the Saudi capital market. To test the hypothesis of the study, the historical, descriptive analytical, and inductive methods were employed. One of the most important findings of the study was the existence of a statistically significant relationship between credit risk and stock liquidity. In addition, there was a positive and statistically significant relationship between liquidity risk and stock liquidity in the Saudi capital market.

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Akbar, Mochamad Malik. "Liquidity Risk and Return to Islamic Interbank Money Market Development." Jurnal Manajemen dan Bisnis Performa 16, no. 2 (September 7, 2019): 113–22. http://dx.doi.org/10.29313/performa.v16i2.6191.

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The low interest of Islamic banking in managing its liquidity risk management on Islamic Interbank Money Market (IIMM) has led to sluggish development of IIMM. The purpose of this study is to determine the effect of risk management of Islamic banking liquidity, determine the factors that cause the relationship of influence between the management of liquidity risk and IIMM Return, and knowing the prospects of risk management issues of Islamic bank liquidity concern to the development of IIMM. This research use descriptive and ARCH and GARCH. The results show the variant of EGARCH (1,1) as the best model with R2 1.44%. The Factors affect to IIMM are FDR, STM and Return.Keywords: IIMM Volume, Liquidity Risk, STM and FDR Risk, Return, ARCH and GARCH.

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Rahman, Md Lutfor, and SM Hasanul Banna. "Liquidity Risk Management: A Comparative Study between Conventional and Islamic Banks in Bangladesh." Journal of Business and Technology (Dhaka) 10, no. 2 (August 25, 2016): 18–35. http://dx.doi.org/10.3329/jbt.v10i2.29465.

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Liquidity risk may arise from diverse operations of financial intermediaries, facilitators and supporters as they are fully liable to make available liquidity when required by the third party. Incase of Islamic Banks additional efforts are required for scaling liquidity management due to their unique characteristics and conformity with Shariah principles. The objective of this study is to look into the liquidity risk associated with the solvency of the financial institutions, with a purpose to evaluate liquidity risk management (LRM) through a comparative analysis between conventional and Islamic banks of Bangladesh. This paper investigates the significance of Size of the Firm, Net Working Capital, Return on Equity, Capital Adequacy and Return on Assets (ROA), on Liquidity Risk Management in conventional and Islamic banks in Bangladesh. The study has taken six mid-size banks- three conventional and three Islamic banks as samples. It is based on secondary data which are collected from the selected banks annual reports, covering a period of 2007-2011. Independent variables that have positive but insignificant relation are; size of the bank and net working capital to liquidity risk in Islamic banks and in case of conventional banks size of bank is negatively related with the liquidity risk. Only return on assets is positively affecting the liquidity risk at 10% level in case of conventional banks, but in Islamic banks the relationship is insignificant. The other variables are found to be insignificant in affecting the liquidity risk for both the conventional and Islamic banks in BangladeshJournal of Business and Technology (Dhaka) Vol.10(2) 2015; 18-35

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Solonina, S. V. "Theoretical aspects of liquidity management in a commercial bank." Scientific bulletin of the Southern Institute of Management, no. 1 (May 23, 2020): 61–69. http://dx.doi.org/10.31775/2305-3100-2020-1-61-69.

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The study presents various approaches to the interpretation of the concept of liquidity of a credit institution and its essence. Differences are highlighted that reflect the priority aspects in assessing the liquidity of a commercial Bank from the authors ‘ point of view. The Bank of Russia’s liquidity ratios and ratios are also presented. The research resulted in a change in the Bank’s structure, since the most important element of the formation of a commercial Bank’s liquidity management system is the improvement of the organizational structure responsible for forecasting liquidity and selecting management tools. When improving such a structure, it should be ensured that the structure is integrated into the unified management system of a commercial Bank, that it is linked to other structural divisions of the Bank, and that it has a comprehensive approach to managing liquidity risk, along with other risks. It is concluded that the most effective model is the creation of a single risk management Department, which includes a liquidity management Committee. At the same time, all structural divisions of the Bank should be included in the General system. The recommendation to evaluate the obligations taking into account the possibility of their early repayment is justified.There is no conflict of interests.

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Ni Luh De Erik Trisnawati. "Kinerja Keuangan dan Risiko BUMDes (Studi Kasus Pada BUMDes Suka Pura)." ARTHA SATYA DHARMA 14, no. 1 (March 1, 2021): 58–64. http://dx.doi.org/10.55822/asd.v14i1.68.

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The purpose of this study was to find empirical evidence regarding the relationship between risk and financial performance at BUMDes Suka Pura. Effective risk management will keep liquidity safe and minimize losses so that financial performance improves. The risks tested are liquidity risk and credit risk, which are measured through ratio analysis to the 2018 to 2020 financial statements. The Data Analysis technique used is Multiple Regression with the help of SPSS. The results of this study found that liquidity risk has a significant positive effect on financial performance. Credit risk has a significant negative effect on financial performance. The risks closest to BUMDes that manage savings and loan units are liquidity risk and credit risk. Keeping liquidity safe through effective lending will reduce the possibility of credit risk.

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YAZICI, Mehmet. "Case of Liquidity Risk: Demirbank." International Journal of Scientific Research and Management 10, no. 07 (July 11, 2022): 1190–204. http://dx.doi.org/10.18535/ijsrm/v10i7.sh02.

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Liquidity risk is the possible loss of funds as a result of not being able to find the required amount of funds at an appropriate cost when needed or not being able to sell a financial asset at the required time and price. Briefly, it is the risk of maturity mismatch of cash inflows and outflows. Banks that use the short-term funds they collect in long-term assets are exposed to such a risk. Despite international regulations, it is observed that even in banks with sufficient capital levels, problems arise in the management and liquidity due to the change in risk appetites of different financial institutions in different periods. After the World War II, and especially with the effect of the liberalization policies of the Democratic Party in Türkiye, which was in ruling between 1950-1960, 24 new banks were established. In the case of Demirbank, which resulted to took over by the Savings Deposit Insurance Fund (SDIF) in 2000, especially all the process until the transfer of the bank to the fund, is a lesson to learn on liquidity risk management. In this article it is aimed to shed light on a period in Turkish banking history, the theoretical framework and the regulatory and supervisory processes and the reactions of related institutions.

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Saputera, Denny. "Risk Management in Gaining Profitability of Banking Companies." Jurnal Keuangan dan Perbankan (KEBAN) 1, no. 1 (November 4, 2021): 26–43. http://dx.doi.org/10.30656/jkk.v1i1.3998.

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Profitability is a bank's ability to earn a profit during a certain period. The amount of profitability of a company tends to be influenced by various kinds of risks. The risks that occur will cause losses to the bank if it is not detected and not managed properly. The purpose of this study is to determine the effect of credit risk, operational risk, and liquidity risk on the profitability of rural banks in the city for the 2019 period. The number of samples taken is 10 rural banks, through purposive sampling technique. The data collection method used is the non-participant observation method with multiple linear regression data analysis techniques. Based on the results of the analysis, it was found that credit risk had no significant positive effect on profitability. Operational risk has a significant negative effect on profitability. Liquidity risk has a significant positive effect on profitability

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Kopitin, Cyril. "Managing risk of liquidity: a new dimension of risk management." International Journal of Risk Assessment and Management 17, no. 2 (2013): 89. http://dx.doi.org/10.1504/ijram.2013.057102.

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Ghenimi, Ameni, Hasna Chaibi, and Mohamed Ali Brahim Omri. "Liquidity risk determinants: Islamic vs conventional banks." International Journal of Law and Management 63, no. 1 (November 18, 2020): 65–95. http://dx.doi.org/10.1108/ijlma-03-2018-0060.

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Purpose This paper aims to identify and analyze the similarities and differences of the liquidity risk determinants within conventional and Islamic banks. Design/methodology/approach This study uses a dynamic panel data approach to examine the relationship between liquidity risk and a set of bank-specific and macroeconomic factors during 2005–2015, by selecting 27 Islamic banks and 49 conventional ones operating in the MENA region. More specifically, the dynamic two-step generalized method of moment estimator technique introduced by Arellano and Bond (1991) is applied. Findings The results suggest that the set of bank-specific variables influences the liquidity risk of both banking systems, while macroeconomic factors determine the liquidity risk of conventional banks. Islamic banks are not affected by macroeconomic determinants. Practical implications The research facilitates to the academicians, practitioners and bankers to have an alluded picture about liquidity risk determinants and their management. The findings can be used by bankers’ policy decision-makers to improve and enhance their consideration for liquidity risk management in both banking systems. Indeed, the study makes them aware to manage liquidity risk differently between conventional and Islamic banks, as the results reveal different liquidity risk determinants. Originality/value Compared to the abundant studies on the determinants of credit risk, researchers have not sufficiently addressed the factors influencing liquidity risk. Moreover, none of these few research studies has discussed and compared liquidity risk determinants within both banking systems operating in the Middle East and North Africa (MENA) region. This leads us to identify the similarities and differences between conventional and Islamic banks in the MENA region in respect of systematic and unsystematic determinants of the liquidity risk. The value is attributed to the increasing differentiation between Islamic and conventional banks. Islamic banks are characterized with a different liquidity structure distinguishing them from their conventional counterparts.

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Hafez, Hassan M. "Risk management practices in Egypt: A comparison study between Islamic and Conventional banks." Risk Governance and Control: Financial Markets and Institutions 5, no. 4 (2015): 257–70. http://dx.doi.org/10.22495/rgcv5i4c2art1.

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The purpose of this research is to examine the degree to which the Egyptian banks use risk management practices and techniques to eliminate associated risks to their business. Not only has that but also to compare between Islamic and conventional banked in terms of risk management practices. A standardized questionnaire was used to cover the main aspects of risk management: understanding risk, risk management, risk identification, risk assessment and analysis; risk monitoring and risk management practices and finally the types of risks faced by the two set of banks. The study found that the most challenging types of risks facing Islamic and conventional banks in Egypt are credit and liquidity risks. Conventional banks are more efficient in risk management and use more sophisticated techniques and practices. Liquidity risk is the most prominent and vital risk for Islamic Banks.

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Journal articles on the topic 'Liquidity risk management'

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