Assessment and management of liquidity risk of commercial banks [Articol]

Abstract

The purpose of the article: is to analyze and evaluate how financial institutions manage resources to maintain operational stability and prevent liquidity risk, with an emphasis on identifying productive methods to correctly manage risk. Methodology: The research employed various scientific methods and analytical tools, such as comparative analysis, tabular representation, and graphical techniques, to investigate economic processes.These means allowed to analyze the investigated problems in more depth. Conclusions: liquidity management has a critical aspect, that of maintaining a balance between the need to have sufficient financial resources for daily operations and to use funds in a productive way to generate profit. The topic addressed is an essential topic in the banking world, because liquidity is vital for the efficient functioning of banking institutions. The originality of the research lies in explaining the concept of liquidity, describing the management stages, assessing risks according to the regulations of commercial banks and quantitative and qualitative analysis. The data are collected from the financial reports of the Central Bank, Moldinconbank S.A., regulations and sources. The analysis focuses on market instruments for liquidity management and the recommendations formulated, which can be consulted in the management of liquidity risk.