An empirical proof for the measurement of liquidity risk in commercial banks

J.N.HEMALATHA; Dr. V. SACHITHANANTHAM

An empirical proof for the measurement of liquidity risk in commercial banks

January 2016

Volume-1, Issue-1, 2016

Paper ID: C-1157

ISSN: 2395-4396

Downloads: 0

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Abstract & Details

Research Area

Financial Management

Conference

International Conference on "Innovative Management Practices"

Keywords

Liquidity risk mathematical formula borrow money sell loans default customers expected fund unusual fund

Abstract

Risk in commercial banks is mainly because they fund themselves with liabilities that have very short contractual maturity such as demand deposit and checking of accounts. In such a situation the bank’s choices are simplified into three categories namely borrow money from other banks, sell some of the loans possibly at deeply discounted prices or default to the customers and go out of business. For which a derived mathematical formula for the real time data in the specified bank shall be applied for measurement of liquidity risk in two stages of expected funded requirements and unusual funding requirements.

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Author Information

#	Name	Institute / Affiliation
1	J.N.HEMALATHA	Research Scholar, Bharathiar University , Coimbatore, Tamil Nadu, India
2	Dr. V. SACHITHANANTHAM	Associate Professor in Business, Administration Wing, DDE, Annamalai University, Annamalai Nagar, Tamil Nadu, India

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APA Style

J.N.HEMALATHA & V. SACHITHANANTHAM, Dr. (2016). An empirical proof for the measurement of liquidity risk in commercial banks. International Journal of Advance Research and Innovative Ideas In Education, 1(1), 253-256.

MLA Style

J.N.HEMALATHA, and Dr. V. SACHITHANANTHAM. "An empirical proof for the measurement of liquidity risk in commercial banks." International Journal of Advance Research and Innovative Ideas In Education, vol. 1, no. 1, 2016, pp. 253-256.

IEEE Style

J.N.HEMALATHA and Dr. V. SACHITHANANTHAM, "An empirical proof for the measurement of liquidity risk in commercial banks," International Journal of Advance Research and Innovative Ideas In Education, vol. 1, no. 1, pp. 253-256, 2016.

Vancouver Style

J.N.HEMALATHA, V. SACHITHANANTHAM Dr.. An empirical proof for the measurement of liquidity risk in commercial banks. International Journal of Advance Research and Innovative Ideas In Education. 2016;1(1):253-256.

Harvard Style

J.N.HEMALATHA & V. SACHITHANANTHAM, Dr. (2016) 'An empirical proof for the measurement of liquidity risk in commercial banks', International Journal of Advance Research and Innovative Ideas In Education, 1(1), pp. 253-256.

Chicago Style

J.N.HEMALATHA and Dr. V. SACHITHANANTHAM. "An empirical proof for the measurement of liquidity risk in commercial banks." International Journal of Advance Research and Innovative Ideas In Education 1, no. 1 (2016): 253-256.

Turabian Style

J.N.HEMALATHA and Dr. V. SACHITHANANTHAM. "An empirical proof for the measurement of liquidity risk in commercial banks." International Journal of Advance Research and Innovative Ideas In Education 1, no. 1 (2016): 253-256.