International Journal of Management (IJM)

Source ID:00000011
Volume 6, Issue 11,November 2015, Pages 1-18, Page Count - 18

AN EMPIRICAL EXAMINATION OF LIQUIDITY RISK MANAGEMENT WITH SPECIAL REFERENCE TO VIJAYA BANK

Shivakumar Deene (1)

(1) Assistant Professor, Department of Commerce, Central University of Karnataka, Gulbarga, Karnataka, India.

Manuscript ID:- 00000-50650
Access Type : Open Access
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Cite this article:Shivakumar Deene,  An Empirical Examination Of Liquidity Risk Management With Special Reference To Vijaya Bank, International Journal of Management(IJM), 2015, 6(11), PP.1-18

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Abstract

Liquidity is a matter of cash flow as they pass through the balance sheet and income statement on continues basis. Liquidity risk present when, for whatever reason, this flow is endangered, if there is a demand for cash, particularly if it comes from outside the organization, it must be satisfied. The objective of liquidity risk management is to understand how cash flows are moving within an organization, to identify the existence and location of cash flow strains by measuring liquidity pressures, and to take corrective actions to prevent these pressures from growing liquidity needs (Taylor, 2001). Liquidity needs usually determined by the construction of a maturity ladder that comprises accepted cash flow over a series of specified time periods. The difference between the inflows and outflows in each period (i.e., the excess or deficit of funds) is a starting point to measure a banks future liquidity access or shortfall at any given time. Once liquidity needs had been determined, a bank must decide how to fulfil them. Liquidity management is related to net funding requirement, and in principle a bank may increase the liquidity through asset management, liability management, but most frequently a combination of both.
Author Keywords
Risk Management Vijaya Bank and Liquidity
Index Keywords
Income statement Cash flows Corrective action Maturity ladder


ISSN Print: 0976-6502 ISSN Online: 0976-6510
Source Type: Journals Document Type: Journal Article
Publication Language: English DOI:
Abbreviated Journal Title: IJM Access Type: Open Access
Publisher Name: IAEME Publication Resource Licence: CC BY-NC
Major Subject:Social Sciences and Humanities Subject Area classification: Business, Management and Accounting
Subject area: Accounting Source: SCOPEDATABASE