In financial markets, the main component of risk management is liquidity risk. Asset and Liability Management (ALM) strategy is concerned with managing all risks. Asset and liability management seeks to manage liquidity risk, which refers to both the liquidity of markets and which assets can be translated into cash. The liquidity is importantly affected by the management of banks’ balance sheet...

The COVID-19 pandemic has caused the banking sector to become one of sectors experiencing problems due increasing number non-performing loans and a decrease in capital adequacy ratio. purpose this study was determine effect credit restructuring, on bank liquidity moderated by size. population are Conventional Commercial Banks Sharia registered with Financial Services Authority (OJK). sample tec...

Sustaining efficiency and stability by properly controlling the equity to asset ratio is one of the most important and difficult challenges in bank management. Due to unexpected and abrupt decline of asset values, a bank must closely monitor its net worth as well as market conditions, and one of its important concerns is when to raise more capital so as not to violate capital adequacy requireme...

Regulation of insurers has focused primarily on insurer solidity.1 The concern for solidity centers on safe capitalization requirements for insurers, premium rate adequacy, and investment controls. Although current regulatory concerns frequently address issues of pricing equity and new approaches to risk classification, solidity remains the principal consideration. Capital adequacy, a key solid...

JEL Classification C12; C23; G21; G32. The only way to ensure a well-informed response to bank risks is by ensuring transparent disclosures that flourish with potential synergy. This study investigates the impact of bank disclosures on credit risk where panel data are used. PCSE and FGLS regression models are applied to a sample of 32 commercial banks in Bangladesh from 2010 to 2014. The result...

With the drafting of new banking regulation via the Basel II capital accord, bank regulatory capital and its adequacy has become the subject of much debate. In our contribution, we strive to construct a stochastic dynamic model to describe the evolution of bank capital that incorporates capital gains and losses. In our paper, such gains and losses are represented by loan loss reserves and the u...