Liquidity of the banking system: problems of regulation

Abstract

Within the framework of this article, the authors raise the issue of the development of the banking system. The article is devoted to the problems and peculiarities of the liquidity management of the banking system and its impact on the activities of banks. According to the authors, liquidity acts as the main indicator of the stability and reliability of banks. It is important that the level of liquidity is at a strictly defined level. Only under this condition the income of banks will be maximized. This explains the need to develop an effective mechanism for managing liquidity. The authors emphasize that in order to maintain liquidity, it is necessary to constantly maintain the ratio of its three main components: own, borrowed and placed funds. It is noted that the level of liquidity is largely determined by a combination of external and internal factors. The authors formulate a list of two types of factors that have the greatest impact on the state of liquidity. The article emphasizes that there is a very close relationship between liquidity and profitability: with an increase in the liquidity of assets, the risk associated with them decreases, which means that the profitability from the sale of these assets also decreases. The authors also consider the main methods of asset and liability management and list their features. However, it should be understood that the most effective management of the liquidity of the banking system can be achieved only with the integrated management of both assets and liabilities. The authors argue that a number of problems may arise in the process of liquidity management. In this regard, they are developing measures to overcome these problems. In addition, a list of those aspects that need to be given more attention in the management of liabilities is given.