European Financial and Accounting Journal 2012, 7(1):41-61 | DOI: 10.18267/j.efaj.14

Liquidity Risk - Measurement and Control

Naďa Blahová
Ing. Naďa Blahová, Ph.D. - senior lecturer; Department of Monetary Theory and Policy, Faculty of Finance and Accounting, University of Economics, Prague, W. Churchill Sq. 4, 130 67 Prague 3, Czech Republic; <blahova@vse.cz>.

The article deals with the liquidity risk in the banks in the context of the financial crisis. At first, the balance sheet and market liquidity are defined and the main principles of the methods for measuring liquidity risk, which banks use, are identified. Then follow review of main challenges of managing the liquidity of banks. Finally, it discusses qualitative regulatory requirements and eligibility of newly formulated standards with regard to minimum liquidity in general and in relation to the Czech banking sector in particular.

Keywords: Bank, Financial market, Liquidity, Regulation, Risk
JEL classification: G21, G28

Published: March 1, 2012  Show citation

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Blahová, N. (2012). Liquidity Risk - Measurement and Control. European Financial and Accounting Journal, 7(1), 41-61. doi: 10.18267/j.efaj.14
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