Approach to liquidity risk management in credit institution

Abstract

This paper gives a survey of the liquidity control instruments in banking operations which were suggestedin the document “Basel III: International Approach to evaluation, standards and monitoring of banking liquidity” by Basel Committee on Banking Supervision. This paper reveals the content of liquidity coverage ratio (LCR) and net sustainable financing ratio (NSFR). The author proposes the bank community not to wait for the Bank of Russia regulations to be adopted (in 2015 and 2018) but to put them into everyday banking practice on a self-regulating basis by means of “The Quality Standard of Liquidity Risk Management in Credit Organizations” accepted at the VI Research-and-application conference “Banks. Processes. Standards.  Quality.”