The book focuses on the different liquidity risk
measurement and management techniques and models,
with the objective of giving an overview of the
possibilities Hungarian banks may opt for. The proper
management of liquidity risk is receiving growing
attention lately primarily due to the increase in
risk factors and to the effect of recently
experienced crises. Numerous changes in market trends
have augmented liquidity risk exposure, for example
the growing loan/deposit ratio and wholesale
funding, the fact that banks are becoming more and
more lenders of second resort, etc. The different
types of liquidity risk and a possible liquidity risk
management process and structure are discussed. It is
impossible to examine liquidity risk management
techniques without getting familiarized with the
framework in Hungary. This framework includes
regulations and recommendations of the Hungarian
Financial Supervisory Authority (PSZÁF), thesecond
pillar of Basel II, central bank (MNB) tools,
interbank market characteristics and market trends.
Finally, the book offers practical advice in relation
with liquidity management strategies, techniques,
systems and controls.
measurement and management techniques and models,
with the objective of giving an overview of the
possibilities Hungarian banks may opt for. The proper
management of liquidity risk is receiving growing
attention lately primarily due to the increase in
risk factors and to the effect of recently
experienced crises. Numerous changes in market trends
have augmented liquidity risk exposure, for example
the growing loan/deposit ratio and wholesale
funding, the fact that banks are becoming more and
more lenders of second resort, etc. The different
types of liquidity risk and a possible liquidity risk
management process and structure are discussed. It is
impossible to examine liquidity risk management
techniques without getting familiarized with the
framework in Hungary. This framework includes
regulations and recommendations of the Hungarian
Financial Supervisory Authority (PSZÁF), thesecond
pillar of Basel II, central bank (MNB) tools,
interbank market characteristics and market trends.
Finally, the book offers practical advice in relation
with liquidity management strategies, techniques,
systems and controls.