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Liquidity Risk

Autor:   •  March 8, 2017  •  Coursework  •  3,257 Words (14 Pages)  •  554 Views

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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:

  1. All books, journals, websites and other sources of information have been attributed in the text and cited in the references and bibliography.

  1. No work has been included that is not my own unless specifically referenced as detailed above.
  1. By submitting this assignment via Blackboard, I acknowledge that it will be assessed using the Turnitin plagiarism detection software and acknowledge that any suspected cases of

 malpractice will be investigated under the relevant University regulations. (Please see the  

 following URL: http://www.bangor.ac.uk/regulations/index.php.en )

  1. I accept that any proven cases of malpractice will be reported to the Chartered Banker Institute and understand that any proven cases may affect my ability to obtain the

professional designation and/or complete the Chartered Banker MBA programme

.

Signed:

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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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