Based on the structure of the sources

Quality and quantity of attracted resources characterize the ability of the bank's interest to depositors who trusted him with their funds. The more stable the liabilities involved, the more stable foundation for the development of active operations of the bank, and the lower the interest rates on the resources that are involved, the more likely the bank's profit. Consequently, cheap enough stable liabilities is a prerequisite for the commercial bank liquidity, and confidence of depositors and creditors - a kind of capital, through which, even in difficult circumstances short-term bank does not get rid of its resource base. Furthermore, the development of money market yields potential in the event of a liquidity risk of the interbank market to raise money or borrow from a lender of last resort - the central bank. Consequently, the bank's liquidity depends on the structure and quality of the resource base, as well as on the level of money market and the implementation of the central bank of its direct functions. Category: Management Operations Commercial Bank