The banking sector and mid-year liquidity risk
Analyst from the Macroprudential Policy Department of Bank Indonesia
Liquidity is important for banks because it determines their short-term operational capability. Banks with ample liquidity stock will be able to manage their cash outflows, either from loan disbursement or funds withdrawal, and so on.
Meanwhile, a bank with a liquidity shortage may not be able fund outflows, thus diminishing its trustworthiness. In its worst scenario, it may l...
Disclaimer: The opinions expressed in this article are those of the author and do not reflect the official stance of The Jakarta Post.
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