Features of banks` liquidity management in the context of the introduction of the LCR ratio in Ukraine

Abstract

The article considers the specifics of the introduction of the liquidity coverage ratio in the practice of commercial banks of Ukraine. The practice of liquidity regulation in crisis situations in the financial markets has shown that the old liquidity standards N4 and N5 do not fully meet the need to ensure the stability of commercial banks. At the same time, the application of the liquidity coverage ratio (LCR) to regulate liquidity, provides sufficient financial stability of banks by preventing and reducing liquidity risk. This requires additional research on the peculiarities of the transformation of approaches to bank liquidity management when changing mandatory liquidity standards. The peculiarities of changing the liquidity management tools under the application of the LCR standard are determined. At the same time, the introduction of the LCR standard not only contributes to the overall improvement of the bank's liquidity management efficiency, but also to the overall stability of the banking system.