Liquidity Risk Management

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), the second
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.

Autorentext
Eszter Baranyai was born on 19/08/1984 in Budapest. She was
awarded 1st Class Honours in her Master s Degree in Economics
from Corvinus University of Budapest. Eszter majored in Capital
Markets and Corporate Finance. Currently, due to a regional grant
of the French Government, she continues her studies in Banking at
ESSCA, France.

Klappentext
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), the second 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.