| dc.description.abstract | Liquidity risk is the risk of adverse effects (unexpected losses) on financial results and equity due to bank’s inability to properly fulfill its obligations. Risk management is very important, given that the insolvency of one bank can have far-reaching effects on the entire financial system and the global environment, as confirmed by the crisis in the U.S. mortgage market, which began by subprime loans in 2007 and then spilled over to the entire world. Many debt holders refused or were unable to stop their investments creating huge problems of funding for financial institutions. These problems are exacerbated their difficulties to sell their assets to secure financial resources. This paper analyzes the sources of liquidity, including liquidity risk and asset liquidity risk financing (funding). Liquidity of assets is analyzed as the ability to generate cash, depending on market conditions, spread (bid-ask price) and the impact of the market, and the time horizon of liquidation, and the value at risk (VaR) is extended to VaR adjusted liquidity. Funding liquidity risk analysis, based on an assessment of the basic structure of liabilities and off-balance sheet items, using gap analysis, emphasizes the importance of contingency planning functions financing, practical experiences of managing liquidity risk and introduction of general-Basel III liquidity. | sr |
