Liquidity Management: Types, Strategies, Theories
Liquidity means the bank has the right amount of immediately spendable funds (i.e., in every account) or can raise the necessary fund by borrowing or selling assets.
Why Banks Face Liquidity Crisis? [8 Reasons]
Liquidity management is an important problem of commercial banks. There are many possible reasons which may cause such a problem. 8 of the reasons for the liquidity crisis are: Short-term funds used in long-term investment Experienced bank managers never use short-term funds for long-term loans & investments whether there is enough possibility of profit or…