Liquidity Managemeng in Crisis

Banks play a central role in all modern financial systems. The recent financial crisis underlined the importance of a second type of buffer, the “liquidity” that banks have to cover unexpected cash outflows. A bank can be solvent, holding assets exceeding its liabilities on an economic and accounting basis, and still die a sudden death if its depositors and other funders lose confidence in the institution. The main idea of the paper is to give recommendations on liquidity risk management in crisis. In this paper, following tasks have been solved: • to show different approaches to the meaning of the liquidity risk; • to show different methods for analyzing liquidity level; • to give a characterization of the banking sector (liquidity) • to give a brief economic characterization of the Sberbank; • to assess the liquidity of the bank; • to formulate conclusions on the analysis; • to give recommendations on liquidity management of the bank in crisis. Sufficient level of liquidity can be provided in crisis, but only with a careful planning of income and expenses and good liquidity risk management policy.