Liquidity management

Learning outcomes

After studying this course, you should be able to:

  • understand the nature of liquidity risk
  • understand methods that can be used to measure exposure to liquidity
  • review how organisations manage their exposure to liquidity risk
  • appreciate how liquidity risk can be managed through the effective structuring of assets (particularly liquid assets) and liabilities (particularly debt liabilities)
  • understand methods employed by banks and other financial institutions to manage their liquidity.