Liquidity Risk
Autor: sbindura01 • March 8, 2017 • Coursework • 3,257 Words (14 Pages) • 554 Views
Assignment Cover Sheet
Name of Candidate: | SANDRA BINDURA |
Student Number: | 500438045 |
Module Name: | FIRM |
Word Count: | |
Number of Pages (including appendices) | 12 |
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Statement of Authenticity
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Before signing this sheet, please read through the following statements and tick the box to confirm:
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malpractice will be investigated under the relevant University regulations. (Please see the following URL: http://www.bangor.ac.uk/regulations/index.php.en ) | |
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professional designation and/or complete the Chartered Banker MBA programme |
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Signed: | [pic 5][pic 6][pic 7][pic 8] |
Date: | 29 June 2016 |
EXECUTIVE SUMMARY
The 2008 year was one of the periods which suffered great financial crises and could be considered the most devastating crisis since the Great Depression of 1929. The root of the crises was linked to the sub- prime loan in US, which banks issued high risk loans to people of poor credit history. The awful events saw the financial intermediaries encountering specific liquidity problems as well as “evaporation” of liquidity in the markets that created solvency problems.These adverse conditions brought in new dimensions in the regulations of banks whereby liquidity became an equally important factor just like capital adequacy requirement.
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