Due to concerns about poor identification and management of liquidity risk, which were made worse by the financial crisis, and growing difficulty of the financial markets, authorities are currently focusing heavily on this issue. A lack of liquidity at one institution can have system-wide repercussions because of how interconnected the financial sector is becoming. This paper aims to provide explanations of how important decisions made by bank managers can influence the capability of the bank during a financial crisis. Primary and secondary data are used to study and analyze the cause of liquidity and strategies used for effective liquidity risk management. 10 banks are selected and the Data is collected from 50 respondents who are working in banks.The variables discovered from the evaluations of the literature have been used to frame the questionnaire. The questionnaire also contained the name of the bank, a liquidity risk strategy, and a crisis management technique. These are qualitative aspects of liquidity risk in banks. The study's conclusion was that regulators are currently focusing heavily on controlling liquidity risk due to the growing complexity of the financial markets and worries about insufficient documentation and managing liquidity risk, which have been made worse by the financial crisis. To conclude This paper aims to provide empirical descriptions on how important decisions made by bank managers can influence the capability of an institution to increase financial assets and meet their cash flows during a financial crisis.