Upravljanje rizikom likvidnosti kao dio upravljanja aktivom i pasivom banke
Managing liquidity risk as a part of assets and liabilities bank management

Summary/Abstract: Banks, like other firms, borrow money and transform it into different forms of assets. Liquidity of banks is its ability to meet all payment obligations. Liquidity risk is the possibility of negative consequences on bank's liquidity under the impact of different events, for example deposit withdrawals. The goals of liquidity management are: honor all cash outflow commitments on daily basis, satisfy minimum reserve requirements and other regulatory liquidity standards and avoid additional cost of emergency borrowing and forced liquidation of assets. The Currency Board of Bosnia and Herzegovina is relatively close to the orthodox regime. In that monetary regime the policy instruments of the central bank would be set according to some simple and publicly announced formula, with little or no scope for modification or discretionary action on the part of policymakers. On the other hand, Bosnia and Herzegovina does not have a developed money market. The basic challenges for bank's liquidity management are uncertainty about clients’ behavior and inter-dependencies between taking credits and withdrawal of deposits. To improve liquidity management in B-H banks, a safety zone for liquidity risk must be created. Monetary authorities of Bosnia and Herzegovina must analyze what other countries with currency boards do in this field and incorporate similar solutions adjusted to the situation in Bosnia and Herzegovina.

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