The method of balanced management of liquidity

The advantages of this strategy are: flexibility, allowing the manager to choose a winning combination of different funding sources of liquidity, depending on economic conditions and changes in market prices, profit maximization subject to an acceptable level of risk the possibility of a more balanced approach to liquidity management by the exact definition of liquidity needs. Consequently, each successive approach to the management of bank finance is the logical continuation of the previous one and contains a whole range of known methods and techniques. In domestic practice the parallel use of all three approaches. Some banks (their share is insignificant) control is exercised over all the assets, in most institutions is dominated by autonomous management practices (ie, the second approach - in liabilities), but there are banks, where modern progressive methods of management. Category: Management Operations Commercial Bank | Tags: bank liquidity