Technology management bank liquidity

Given the nature of the conditions of the banks in Ukraine, which have an impact on the characteristics of liquidity (and it is primarily the instability processes, the speed of the majority of operating conditions, weak capacity to influence their change, in addition, most of the factors can be characterized as insufficiently favorable to the banking business and proper performance of its functions in the economy), to reduce the risk of manifestation of these negative developments in the management of liquidity, in contrast to, for example, liquidity management practices, developed in foreign countries, it is necessary to focus on the development of preventive measures, as well as relying on internal control over liquidity. They basically can be necessary changes. Contents of the process of liquidity management of the bank is a flexible combination of contradictory requirements - maximizing profitability for mandatory compliance with standards of liquidity. This well-defined uncertainty as the bank's management can not predict with certainty when and to what extent will face the problem of liquidity. And when it occurs, can only resort to these or other management actions on the basis of previously established reserves of liquid assets, the special structure of assets and liabilities or-established operations. Probability situation mismatch between demand and supply of liquidity funds called liquidity risk. Category: Management Operations Commercial Bank