Liquidity Risk Manasement in the Uk Banking Industry

Abstract

In the aftermath of the 2008 global financial crisis, many theorists and studies put forward assumptions and positions explaining the causation or development of the credit crunch. At the same time, they suggested measures to manage risk and prevent the occurrence of such a crisis in the future. Since the crisis was primarily about the drying-up of liquidity, this study aims to focus on apprising the issue of liquidity, liquidity risk assessment, and approaches to managing such a risk within an economy. Studies indicate that liquidity crises are not overly rare as people might have assumed in the pre-2008 crisis era.