Identify the sources of coverage requirements in the bank for liquidity

Sources of the needs of the bank include in its membership and accumulated purchase the bank's liquidity. In the calculation of the accumulated liquidity are highly liquid bank assets: Cash and balances on correspondent accounts with the NBU, the correspondent accounts with other banks, deposits at the National Bank, part of the portfolio in the most liquid and those that are permanently listed on the stock exchange, securities, bank bills discounted in terms of those that are freely traded. The calculation is carried on the balance of the accounts on the day of reckoning. In the calculation of the purchase the bank's liquidity include: limits on the amount of counterparty banks in the interbank market (in terms of the amount of interbank loans, which really can bring in during the time interval), the amount of credit lines opened by the bank, and separate agreements with corporate creditors of the bank, the sum of Bank deposits (interbank and large creditors of the bank), which may be agreed to prolong the deposits held in bank loans to the NBU in the amount of the package of government securities, mortgage-free. In calculating the purchase price and the accumulated liquidity options should adjust them to changing conditions and asset sales to raise funds from the financial market. Obviously, the probability of getting at the right time inter-bank loans in full for all the selected bank limit is negligible, so it is realistic about the ability of bank credit in the interbank market and do not unreasonably rely on the entire credit limit the bank. 6. The calculation of liquidity gap (actual and projected) in each of the recorded intervals at baseline and alternatives. Category: Management Operations Commercial Bank | Tags: bank liquidity