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Helene Viel

The liquidity risk management, What else?

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The liquidity risk management concept has often been minimized in analysis and forecasts. 

The role of banks helps this concept not to be put under light and other concepts such as commercial ones have taken precedence over liquidity risk management. Banks offer easy financial facilities and credit conditions to be able to stay active. Private organizations had relied on banks to stay active in the markets. The last financial crisis in 2008-2009 underlined the consequences of the use of excessive risk-taking policies. 

In that context, the liquidity reserve is low and cannot help to stay efficient and reactive in the industry markets. A financial spiral appears, and bankruptcy may be announced.



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