Liquidity means literally ease of implementation, which involves the transformation of material values into cash.There are such things as the liquidity of the market liquidity, bank balance and assets.
liquidity of commercial banks means its solvency.The bank is liquid if the total volume of all its cash, other assets liquid nature and ability to mobilize funds from its own sources in a short time are sufficient to repay all the financial and debt.
In addition, the bank should have a liquidity reserve required to meet the evolving financial needs. mandatory reserves of commercial banks largely able to secure the bank's position in the event of unforeseen circumstances.
liquidity management of commercial bank involves practical measures to control the state of liquidity and readiness to respond to any kind of deviation from the norm.
In theory allocate such ways to improve the bank's liquidity requirements as a demand repayment of issued loans to the non-renewal of loans, expansion of passive operations, the issue of certificates of deposit, sale of a certain part of the securities portfolio, the implementation of loans from the Central Bank.
To maintain the stability the bank must have a certain liquidity reserve character.It is necessary to cover contingent liabilities, caused by various external and internal factors.
liquidity of commercial banks depends on the political situation of the country, economic realities across the state, the state of all money market refinancing by the Central Bank, the state of the securities market, improvement of banking legislation, reliability and customer, the nature of management in a bank obespechennostisobstvennym capital andetc. factors.
Central banks regulate commercial banks' liquidity through the imposition of restrictions that apply to the bank's liabilities, beyond the debt per borrower, control over the issuance of loans in a large scale, the refinancing system and the obligatory reserve a certain part of the borrowed funds, interest rate policy, securities transactionsand others. In Russia, the solvency of commercial banks is also subject to regulation.
order to maintain the bank's liquidity situation need to predict the possible tide deposits "on demand" and "unreliable" term deposits, the growth in demand for loans and other factors change the economic situation.
to manage liquidity bank must properly allocate assets and liabilities.To this end, a table of accounts and determine which part of the liabilities must be placed in liquid article active accounts in order to prevent a decline in the liquidity ratio.
liquidity of commercial banks depends on the state of its assets.Depending on the ease translated into cash assets of the bank are divided into liquid and illiquid.
Liquidity in the immediate readiness.It is by cash, first-class notes, precious metals, government securities held on correspondent accounts in the Central Bank.
Liquid funds at the disposal of the bank, and can be converted into money, it loans and payments to the bank for at most one month;conventionally marketable securities;Other values (including intangible assets).
illiquid assets - it is doubtful debts;overdue loans;investment in real estate, buildings and structures of the bank;unlisted securities.
To maintain the liquidity of the bank can not raise funds in the short-term direction for long-term funds.
liquidity of commercial banks (the level) in practice is evaluated by comparing liquidity indicators with established Central Bank of Russia regulations.
