Nematrian
/

Liquidity Risk - Relevance to Actuaries [5]

Go to: Summary | Previous | Next   
Bullet points include: Liquidity theory not given a great deal of emphasis in Basel II. Appreciation by FSA, see FSA (2007), that: Banks’ maturity transformation activities make them inherently susceptible to liquidity risk, Adequately capitalised firms may not always be able to obtain the liquidity that they require when there are market failures. Managing liquidity risk involves trade-offs. Liquidity risk can grow in severity very rapidly. Is dependent on general liquidity climate (e.g. extent of general liquidity ‘hoarding’) as well as firm-specific features

NAVIGATION LINKS
Contents | Prev | Next | Library

Desktop view | Switch to Mobile