Liquidity Risk Analysis in Scheduled Commercial Banks
S. Anitha1, A. R. Shanmuga Priya2

1Dr. S. Anitha, School of Management, SRM Institute, Kattankulathur (Tamil Nadu), India.
2A. R. Shanmuga Priya, School of Management, SRM Institute, Kattankulathur (Tamil Nadu), India.
Manuscript received on 04 July 2019 | Revised Manuscript received on 14 August 2019 | Manuscript Published on 27 August 2019 | PP: 424-428 | Volume-8 Issue-2S4 July 2019 | Retrieval Number: B10830782S419/2019©BEIESP | DOI: 10.35940/ijrte.B1083.0782S419
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Abstract: Liquidity risk is the bank’s incompetence to meet the financial obligations on due date at rational cost and without experiencing undesirable losses. It is essential that banks should adhere to prudent liquidity risk management framework to avoid insolvency, bankruptcies and to ensure healthy and stable financial position. It also facilitates the banks to reduce the possibility of adverse situation developing. This study examines the liquidity risk management of scheduled commercial banks by applying stock approach i.e., liquidity ratios. This paper assesses the liquidity risk that the SCBs are exposed to spread over a period from 2005-2015 in order to identify effective measures to mitigate the risk. The findings from the study revealed that SCBs has better liquidity risk management framework in practice.
Keywords: Liquidity Risk, Liquidity Risk Management, Basel Committee.
Scope of the Article: Residential, Commercial, Industrial and Public Works