Selected paper

Gongol, Tomáš Vodová, Pavla
Liquidity Risk Regulation
Year: 2014
Volume: 5
Issue: 1
Pages: 7-21
JEL: G01, G21
DOI: 10.5817/FAI2014-1-1

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Keywords:
liquidity risk, financial crisis, regulation, Basel Committee on Banking Supervision

Abstract:
One of the key characteristics of the global financial crisis was the inaccurate and ineffective liquidity risk management. As usual after the crisis, some thoughts about the need for more appropriate liquidity risk regulation emerged. The aim of this paper is therefore to characterize the development of liquidity risk regulation. First part of the paper characterizes reasons for liquidity risk regulation. The second section describes the liquidity risk regulation before the financial crisis. Then we focus on the current level of legislation in the Visegrad Countries and also on prepared changes which will arise from the Basel III rules: minimum liquidity standards (Liquidity Coverage Ratio and Net Stable Funding Ratio) and the monitoring tools for liquidity risk.

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