With such an approach

The theory of liability management for liquidity management of banks based on the following two statements: the bank can solve the problem of liquidity by attracting new money by buying them in the capital market, the bank can provide its liquidity by resorting to large loans from the NBU or correspondent banks as well as loans contained in the foreign exchange market. A necessary condition for a strategy of borrowing liquidity is sufficiently high degree of development of financial markets, allowing at any time and in any quantity to hold liquid assets. The sources of borrowing include: inter-bank loans, lines of credit, loans by the National Bank of Ukraine, international loans, the bank issue its own debt, freely traded in the market. These sources are very different in their characteristics. So, for the most popular include inter-bank lending, loans to the NBU, lines of credit. Segments of the market provided by these tools, the most developed. They have access to virtually all lenders. Loans are the most extensive in comparison with other sources of differentiation in terms of the transaction (date, amount, interest rates, changes found, etc.). Category: Management Operations Commercial Bank | Tags: credit