Liquidity Risk Management as a Factor of Minimization of Instability in the Eurozone Banking Sector in the Post-crisis Period

The onset of the global financial crisis revealed the need for proper management of liquidity. Until 2008, banks had access to easy financing, but they were not sufficiently prepared for the events, which came with the crisis. A failure to assess and manage liquidity correctly has caused turmoil in the global financial market, including Eurozone countries. A crisis caused events such as the bankruptcy of banks, previously considered to be stable and large. Insufficient volume of liquidity during the crisis led to the inability to attract financing for many small banks, forcing them to cease with large losses. These events underscored the need to pay special attention to the liquidity risk. At present, liquidity assessment and management is a vital part of the stable operation of any financial institution. Liquidity is no longer seen as a short-term operational task but as an important part of implementing a business strategy.