Challenges to the Liquidity Management of the Modern Bank Cover Image

Предизвикателствата пред управлението на ликвидността на съвременната банка
Challenges to the Liquidity Management of the Modern Bank

Author(s): Darina Koleva
Subject(s): Economy, Law, Constitution, Jurisprudence, Business Economy / Management, Financial Markets, Accounting - Business Administration, Commercial Law
Published by: Университет за национално и световно стопанство (УНСС)
Keywords: banks; liquidity management; banking regulations
Summary/Abstract: A stable and well-managed banking system is a key factor for the sustainable economic development of any country. Traditionally, the banks’ stability is associated with their solvency, but effective liquidity management is what determines which bank will remain in the business and for how long. This study outlines the classic challenges to liquidity risk management in the banking system and tracks the evolution in the approaches and strategies used. The new challenges for the banks generated by the dynamic development of monetary relations on a global scale are also explored. Their resolution is likely to lead to industry restructuring, changes in the business models followed and the services provided.