Authors :
Swayam Salecha
Volume/Issue :
Volume 8 - 2023, Issue 4 - April
Google Scholar :
https://bit.ly/43uxUln
Scribd :
https://bit.ly/3H1IiYq
DOI :
https://doi.org/10.5281/zenodo.7849160
Abstract :
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.
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.
