Get to grips with liquidity


The market turmoil that began in mid-2007 served to highlight the importance of effective liquidity management and regulators are now moving to address the situation. This is being conducted by the Basel Committee on Banking Supervision, which is tasked with strengthening liquidity rules. Two recent publications are relevant: Principles for Sound Liquidity Risk Management and Supervision, September 2008, and the consultative document, International Framework for Liquidity Risk Measurement, Stand

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