A bank liquidity management

In the "Instructions on how to control and analyze the activities of banks in Ukraine", approved by the Board of National Bank of Ukraine dated August 28, 2001 № 368, says: "The liquidity of the bank - a bank's ability to ensure timely implementation of its monetary liabilities, determined balance between the timing and amounts of assets and repayment of outstanding amounts and terms of the obligations of the bank, as well as the timing and amounts of other sources and uses of funds (loans, other costs). "Based on this definition, the liquidity of individual banks - is the ability of each credit institution make timely payments on demand deposits and liabilities at a certain time. This should be achieved through the organization of active and passive operations and reallocation of aggregate liquidity. But at the same time, the repayment should be carried out without loss to the bank's profits. This definition highlights the main features of the liquidity bank's organization of active and passive operations in accordance with their terms and mandatory bank profitability. Category: Management Operations Commercial Bank