Open AccessLiquidity Risk Regulation
Author(s) -
Tomáš Gongol,
Pavla Vodová
Publication year - 2014
Publication title -
financial assets and investing
Language(s) - English
Resource type - Journals
eISSN - 1804-509X
pISSN - 1804-5081
DOI - 10.5817/fai2014-1-1
Subject(s) - market liquidity , liquidity risk , liquidity crisis , basel iii , accounting liquidity , financial crisis , business , financial risk management , financial system , legislation , funding liquidity , risk management , monetary economics , economics , finance , political science , macroeconomics , market economy , capital requirement , law , incentive
One of the key characteristics of the global financial crisis was the inaccurate and ineffective liquidity risk management. As usual after the crisis, some thoughts about the need for more appropriate liquidity risk regulation emerged. The aim of this paper is therefore to characterize the development of liquidity risk regulation. First part of the paper characterizes reasons for liquidity risk regulation. The second section describes the liquidity risk regulation before the financial crisis. Then we focus on the current level of legislation in the Visegrad Countries and also on prepared changes which will arise from the Basel III rules