The Status of Liquidity Management Systems in Ukrainian Banks
Journal Title: Проблеми економіки - Year 2014, Vol 2014, Issue 4
Abstract
The objective of the article consists in studying the status of principal elements of liquidity management systems in domestic banks. Basic liquidity management strategies of banks were analyzed, the necessity of implementing an integrated liquidity management system was stressed. Key properties and elements of an integrated liquidity management system were identified. By using a questionnaire survey method, the current status of the liquidity management system in Ukrainian banks was analyzed in terms of correspondence of its elements to the characteristics of an integrated one; its principal flaws were identified. The necessity of equal attention paid by the management to the liquidity risk and the credit risk was substantiated. The prospects for further research in this field consist in analysis of the identified flaws of the liquidity management systems in banks and development of recommendations for their elimination, in particular: involvement of front-office representatives into active participation in liquidity management; introduction of an algorithm for calculation of a stimulating liquidity premium within the transfer model in order to achieve more efficient liquidity management by using transfer pricing; improvement of the information support of liquidity management by developing new reporting and analytical forms, etc.
Authors and Affiliations
Ihor Ivasiv, Oleksandr Fuksman
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