ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

Articles by Viral V AcharyaSubscribe to Viral V Acharya

Liquidity Risk

This article examines why banks should be concerned about liquidity risk. It argues that the two forms of liquidity, namely, market and funding liquidity, are highly intertwined and that both are preceded by significantly large shocks to asset prices in capital markets of the economy. The implications of these observations for risk management by banks are also considered.

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