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Liquidity Risk

Managing Asset and Funding Risks

  • Authors
  • ErikĀ Banks

Part of the Finance and Capital Markets Series book series (FCMS)

Table of contents

  1. Front Matter
    Pages i-xxii
  2. Elements of Corporate Liquidity

    1. Front Matter
      Pages 1-1
    2. Erik Banks
      Pages 3-13
    3. Erik Banks
      Pages 14-35
    4. Erik Banks
      Pages 36-59
  3. Liquidity Problems

    1. Front Matter
      Pages 61-61
    2. Erik Banks
      Pages 63-77
    3. Erik Banks
      Pages 78-91
    4. Erik Banks
      Pages 105-126
  4. Managing Liquidity Risks

    1. Front Matter
      Pages 127-127
    2. Erik Banks
      Pages 129-155
    3. Erik Banks
      Pages 156-188
    4. Erik Banks
      Pages 189-200
  5. Back Matter
    Pages 211-230

About this book

Introduction

Much critical attention has been given in recent years to market and credit risks, which have a significant effect on corporate and financial operations and must be understood and managed with care. While these areas have rightly received considerable scrutiny, another critical dimension of financial risk - based on corporate liquidity - has been largely overlooked. Liquidity risk is the risk of loss arising from an inability to quickly realise asset value or obtain funding and can be damaging if not properly considered or actively managed. Lack of liquidity can lead to large losses in asset/liability portfolios and off balance sheet activities and in extreme cases can trigger financial distress and insolvency. Liquidity Risk is a comprehensive treatment of the topic focusing on the nature of the risk, problems that arise in asset and funding liquidity and mechanisms that can be developed to monitor, measure and control such risks.

Keywords

care Controlling Credit Risk crisis management funding liquidity management Portfolio Risk Controlling Risk Management stress

Bibliographic information

Industry Sectors
Finance, Business & Banking