Abstract

Liquidity is considered as a part of banking assets with no returns; therefore, liquidity management depends on banking decisions regarding direct investments, partnerships, facilities, resource mobilisation and allocation of financial expenses. Liquidity management involves anticipating and meeting liquidity requirements of banks. Wise management of liquidity helps the bank to achieve safe limits of liquidity and enables the bank to meet liquidity requirements of investors and customers receiving facilities in a timely and error-free manner. The purpose of this study is to develop a mathematical multi-objective model based on goal programming approach for liquidity management, which leads to optimal liquidity, maximised profit, optimal level of inputs and outputs to the liquidity system, and standard ratios effective on liquidity.

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