Nature and significance of the bank's liquidity

In the interpretation of certain features can be traced, which express the essence of liquidity in general and in particular liquidity. First, each of them has a direct or indirect mention of monetary relations, therefore, the concept of liquidity is directly related to the category of money. Second, in most definitions found indications of timing, ie, liquidity one way or another connected with the time. Also, liquidity is related, firstly, with the ability of handling guns in its core functions, and secondly, with enough money and, thirdly, the reliability performance of debt in society. For the bank money and the working capital and to some extent the product. If manufacturing companies base their work on the circulation of capital mainly in the form of commodities and their liquidity depends on the liquidity of the goods, the bank, carrying circuit of capital in the form of money as an active participant in the money market, deals primarily with debt (of both creditors and debtors .) Category: Management Operations Commercial Bank