To carry out proper and effective management

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7. An action plan in the event of a deficit or surplus of liquidity: the definition of the period with the greatest magnitude of the deficit or surplus liquidity analysis period with the highest liquidity squeeze from the standpoint of its maturity by controlling the timing of transactions concluded with customers on contracts, purchase and accumulated liquidity and to determine the amount of net liquidity (ie, deficit, which can not be resolved through existing at that time instruments of liquidity) shortages of clean sources of repayment of liquidity through the use of surplus generated in the previous time intervals, the accumulated increase in the purchase and liquidity view to minimizing financial costs, identification of alternative areas of investment in the case of the formation of excess liquidity, a plan for recruitment and placement of funds on the timing and amounts of the base and options to determine on the basis of the analysis of baseline and alternative options for the needs of the bank in liquidity accumulated by the terms and development plan with the purchase of liquidity expansion (establishment of correspondent relations with other banks, credit lines at the bank, etc.), optimization of the level of accumulated liquidity and purchase dates and amounts. In addition to analyzing the basic and alternative options should also assess the situation at individual time intervals, leading to the largest liquidity shortage. In the event that such an analysis will identify the inability to repay the bank's liquidity deficit with tools used by the management of liquidity, it is advisable to develop a plan for an emergency crisis management, which provides for procedures to overcome this situation. Thus, the content of liquidity management is to ensure the smooth running of the current payments of the bank, whose main aspects are: the evaluation of the conditions of the Bank for prior periods, the choice of the most probable scenarios, the assessment of the bank's liquidity position in light of alternative scenarios, the development of managerial decisions, aimed at reducing the risk of deficit liquidity position of the bank and minimize costs. Category: Management Operations Commercial Bank | Tags: control