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VIETNAM NATIONAL UNIVERSITY, HANOI HANOI SCHOOL OF BUSINESS PHAM THI THU HA LIQUIDITY RISK MANAGEMENT IN BANKS Case study: Liquidity risk management at Techcombank Major: Business Administration Code: 60 34 05 MASTER OF BUSINESS ADMINISTRATION THESIS Supervisor: Dr Tran Phuong Lan Hanoi, June 2012 ACKNOWLEDGEMENTS First and foremost I offer my sincerest gratitude to Doctor Tran Phuong Lan for giving me the confidence to explore my research interests and the support throughout my thesis with her knowledge and enthusiasm In particular, I can’t thank enough to ms Ho Thi Huong, director of Interest rate trading center at Techcombank for her help and support, specially for giving me opportunities to work directly in money market department that is in charge of managing bank’s daily liquidity so that I could study deeply on the research I would also like thank my colleagues at Techcombank for their lively discussions and detailed guidance Ms Bui Thuy Nga, head of balance sheet management department, ms Le Phuong Mai, money market officer and Ms Nguyen Thi Minh Ngoc, assets and liabilities management officer, they all are so warmly and patient in giving me their time and sharing their precious experiences Special thanks to Ms Tran Thi Hoa, fixed income dealer, she supported me much in daily work so that I could spend much time and focus on the thesis I am so happy because my family always besides me I could feel so warm heart of my mother and love of my husband for me, they encourage me much to study Master of Business administration program and to complete this thesis Hanoi, 06 June 2012 Pham Thi Thu Ha i ABSTRACT LIQUIDITY RISK MANAGEMENT IN BANKS Case study: Liquidity risk management at Techcombank Pham Thi Thu Ha MBA candidate, 2009 - 2011 School of Business – Vietnam National University, Hanoi Supervisor: Dr Tran Phuong Lan June 2012, 91 pages Joining World Trade Organization (WTO) in 2006 brought to Vietnam not only opportunities but also many challenges in global competition One of the most challenging to Vietnam’s young economy is transformation process in financial and banking sector to comply with the WTO’s commitments These have made financial institutions and banks take best efforts to improve business efficiency and internal risk management process to meet step by step global acceptable standards and practices Since six years, Vietnam has taken many efforts to reform banking sector to enhance competition ability Domestic financial market has linked closer and closer to international financial market Experience financial crisis occurring in US’s market in 2007, current public crisis in Europe, risk management become key focus of global financial market Specially, liquidity risk management is essential to survive though crisis and to ensure durable development This thesis focuses on studying standards and guidelines in liquidity risk management, including theory, management principles, measurements and management according to Basel Committee on Banking Supervision These have become international standards that many financial institutions in over the world apply for ii The study makes also clear understanding State bank of Vietnam’s regulations on stipulating prudential ratios in operations of credit institutions Applying in fact, thesis also studies liquidity risk management at Techcombank, one of most dynamic joint stock banks in Vietnam, according to business efficiency and its size Techcombank is also one pioneer bank in Vietnam financial market to study and implement global standards in banking management By analyzing some strengths and weaknesses in liquidity risk management of Techcombank, thesis has proposed some solutions to improve Techcombank’s liquidity risk management, including solutions for daily management operation and also long term solutions iii TÓM TẮT QUẢN TRỊ RỦI RO THANH KHOẢN TRONG HOẠT ĐỘNG NGÂN HÀNG Nghiên cứu: Một số giải pháp nâng cao hoạt động quản trị rủi ro khoản Ngân hàng Techcombank Phạm Thị Thu Hà Sinh viên MBA, 2009 – 2011 Khoa Quản trị kinh doanh, Đại học Quốc gia Hà Nội Giảng viên hướng dẫn: Tiến sĩ Trần Phương Lan Tháng 06/2012, 91 trang Gia nhập Tổ chức thương mại giới (WTO) vào năm 2006, Việt Nam có hội để phát triển, hội nhập kinh tế giới; đồng thời đón nhận thách thức to lớn cạnh tranh toàn cầu Một thách thức lớn Việt Nam việc cam kết tuân thủ điều kiện điều khoản liên quan đến hoạt động lĩnh vực tài chính, ngân hàng Điều khiến tổ chức tài chính, ngân hàng phải thực nỗ lực để nâng cao hiệu kinh doanh đáp ứng chuẩn mực quản trị rủi ro quốc tế cạnh tranh với tổ chức tài tồn cầu Sáu năm gia nhập WTO, khoảng thời gian Việt Nam có bước tiến mạnh mẽ hoạt động hệ thống ngân hàng Hoạt động thị trường tài chính, ngân hàng nước gắn bó mật thiết với diễn biến thị trường tài tồn cầu Trải qua khủng hoảng tài từ năm 2007 với xuất phát điểm từ thị trường chấp Mỹ, đến vấn đề nan giải khủng hoảng nợ công diễn Châu Âu nay, vấn đề quản trị rủi ro trở thành tâm điểm hệ thống tài tồn cầu, nhà quản trị đặc biệt iv trọng đến vấn đề quản trị rủi ro khoản, nhằm đảm bảo tài vững chắc, phịng tránh khả sụp đổ dây chuyền tài tồn cầu Luận văn tập trung nghiên cứu sở lý thuyết chuẩn mực hoạt động quản trị rủi ro khoản thông qua nguyên tắc hướng dẫn đo lường quản trị Ủy ban Basel giám sát ngân hàng Những hướng dẫn trở thành chuẩn mực quốc tế cho hoạt động nhiều tổ chức tài chính, ngân hàng toàn giới Đồng thời, với chuẩn mực này, luận văn phân tích thông lệ thị trường, công cụ quản trị chấp nhận rộng rãi hoạt động quản trị rủi ro khoản Nghiên cứu tập trung vào quy định Ngân hàng nhà nước Việt Nam việc áp dụng chuẩn mực để đảm bảo an tồn hoạt động tổ chức tài chính, ngân hàng Việt Nam Từ lý luận đến thực tiễn, luận văn phân tích hoạt động quản trị rủi ro khoản Ngân hàng Techcombank, ngân hàng thương mại cổ phần hàng đầu Việt Nam xét quy mô hiệu kinh doanh, việc đầu nghiên cứu, áp dụng chuẩn mực quốc tế quản trị ngân hàng Trên sở phân tích điểm mạnh điểm yếu hoạt động quản trị rủi ro khoản, nghiên cứu đưa số giải pháp nhằm cải thiện chất lượng hoạt động quản trị rủi ro khoản Ngân hàng Techcombank, bao gồm giải pháp ngắn hạn quản trị khoản hàng ngày, giải pháp nhằm cải thiện tình hình khoản Techcombank dài hạn v TABLE OF CONTENTS ACKNOWLEDGEMENTS i ABSTRACT ii TÓM TẮT iv TABLE OF CONTENTS vi LIST OF FIGURES ix LIST OF TABLES x LIST OF ABBRIVIATIONS xii INTRODUCTION CHAPTER 1: OVERVIEW OF LIQUIDITY RISK MANAGEMENT IN BANKS 1.1 Introduction of liquidity risk 1.2 Liquidity risk classification 1.3 International standards in management and supervision of liquidity risk 1.3.1 Basel’s principles for the management and supervision of liquidity risk 1.3.2 Liquidity measurement and management 1.3.3 Monitoring tools for liquidity risk management 1.4 State bank of Vietnam’s regulations on liquidity risk management .12 1.4.1 Capital adequacy ratio – CAR 14 1.4.2 Credit limits 14 1.4.3 Limits on capital contribution and share purchase 16 1.4.4 Ratio of granted credit to mobilized capital 17 1.4.5 Solvency ratios 17 vi 1.5 Conformity of State bank of Vietnam’s regulatio standards in liquidity risk management 1.6 Lessons from other bank’s liquidity risk manage 1.5.1 Overview of liquidity ris 1.5.2 Liquidity risk policy CHAPTER 2: LIQUIDITY RISK MANAGEMENT AT TECHCOMBANK 2.1 Techcombank overview 2.2 Process of Liquidity risk management at Techcom 2.2.1 Liquidity risk measurem 2.2.2 BOD and BOM’s risk appetite on liquidity management at Techcombank 2.2.3 Techcombank’s liquidity 2.2.4 Techcombank’s liquidity 2.3 Assessments in liquidity risk management at Tec 2.3.1 Techcombank’s complia 2.3.2 Strengths in liquidity ris 2.3.3 Weaknesses in liquidity risk management CHAPTER 3: SOLUTIONS TO IMPROVE LIQUIDITY RISK MANAGEMENT AT TECHCOMBANK 3.1 Pursuing ambitious business strategy 3.2 Investing in information technology 3.3 Systemic document on liquidity risk management 3.4 Restructuring organization and developing HR vii 3.5 Intelligent and flexible strategic in liquidity risk management 87 CONCLUSION 90 REFERENCES 91 viii LIST OF FIGURES Figure 2.1 Techcombank’s ALCO structure 38 Firgure 2.2 Techcombank’s Treasury structure under ALCO BSM .40 Firgure 2.3 Techcombank’s liquidity risk management process 42 ix decisions to improve bank’s liquidity They also give the rights, powers and responsibilities to specialized units that take care daily liquidity management 2.3.2.5 Human resources Focusing on people, consider staffs as one bank’s precious asset, Techcombank has been organizing many useful training courses on shore and offshore to improve staffs’ knowledge, skills and to update new tools in liquidity management Techcombank is one of the few banks in Vietnam financial market that interests in ALM management and liquidity management from very earlier So the bank’s staffs have chance to learn and exercise day by day the liquidity management process In charge of managing daily liquidity in Techcombank, money marker department, they are very responsible, talent, loyal to the bank The leads are more than ten years up to sixteen years of experience at Techcombank, go through the history of development of not only Techcombank but also Vietnam financial market, come over from the Asia crisis in 1997, global crisis in 2008 and liquidity crisis in local interbank market Overcome each crisis, Techcombank always marks impressive milestone and continues conquering new goals In order to reach kind success, the bank pays much attention to people development, improve compensation system and other benefits, so that staffs are comfortable and try best efforts to contribute to the bank’s development The bank’s vision is that managers not pay only salary to staffs, bank builds and develops value for each key person 2.3.3 Weaknesses in liquidity risk management The bank’s success in recent years is clear evidences in efficient business management strategy and risk management strategy, including liquidity management The strengths as above are precious assets to any enterprises not only banks But besides those strengths, it exist some weaknesses that need to be improved time by time to lead Techcombank to higher goals 77 2.3.3.1 Lack of documented systemic liquidity management policy Although BOD and BOM have had clear vision in liquidity management since very earlier Specialized units are established to manage bank’s liquidity BOD and BOM support much in necessary decisions to ensure bank’s liquidity These decisions could apply in whole system, specially other business division such as PFS, SME, CB, Up to now, basing on the strengths above, Techcombank continues managing well daily liquidity to comply with SBV’s regulations and stricter internal regulations But it lacks a systemic liquidity management policy in documented format Almost decisions are made through the periodically or urgent ALCO’s meetings, or meetings between ALM and Treasury These decisions are not concentrative in any consistent policy, but scattered in each meeting minutes If any issues, specialized units in treasury and/or ALM needs to make purpose to authorized person, CEO/specialized committees … to approve But there have not yet issued systemic documented liquidity management policy It exists now only draft version, based on meeting minutes, or agreements between divisions in the banks In long term, it could damage the bank’s liquidity if bank does not set up the systemic documents on liquidity management It depends much on each individuals involving directly managing process now Lack of official documents, official training activities make next generations difficult to run it well They learn only case by case with the guide of each individual It could manage well liquidity in present but not ensure that for the next future 2.3.3.2 Availability of IT system IT is one of the strength of Techcombank, but it is also one weak point Investing in core banking in very earlier, but with the fast development of Techcombank, IT system now has begun overload In starting days, Techcombank managed only VND 20 billion with tens of staffs, but now it grows more 400 times to level of 78 more VND 8.000 billion with 8.300 staffs in whole system According to annual report in 2011, Techcombank’s total assets were more than VND 180.000 billion, equivalent USD billion The development requires much more adequate IT investment to ensure current operating and to bring Techcombank to higher level In risk management aspect, Techcombank has been setting up tools to managing risk on system It focuses mostly on credit risk; little for market risk and operation risk but none for liquidity risk At the beginning day, ALM officer gets data from bank’s system to make Daily Solvency Report of previous day, signed off by authorized person and send to SBV as regulation But from the year of 2011, IT system is often in overload status The report is often delayed because of system It causes risk to bank, because of as long as bank finishes the report, as difficult as the issues could be solved if any occurring It impacts also intraday business orientations because specialized units have not yet exact data to forecast solvency report of day 2.3.3.3 Efficient Analysis Reporting system Techcombank has not yet build specialized module for liquidity report to recognize the change in solvency ratios intraday and to make report at the end of day So money market officer must analyze and forecast on excel file basing on known information This makes deviation from the actual and forecast report; so the bank must take any solutions back date to bring the ratios in line only after break 2.3.3.4 Structural organization ALM, BSM and Money market department now are responsible for managing bank’s liquidity risk But almost daily activities are run by Money market department – one trading unit in the bank, while BSM and ALM are two specialized units that take care liquidity risk but they are not active in daily work These make mixed structure between trading purpose and liquidity management purpose 79 CHAPTER 3: SOLUTIONS TO IMPROVE LIQUIDITY RISK MANAGEMENT AT TECHCOMBANK Liquidity is still there until it is not The success from the past does not ensure for the future From time to time, through crisis to crisis, not only the regulators want apply more and more tighten regulations on risk management, specially liquidity risk management, but also the shareholder pays much attention to It has come a very hot topic, since recent financial crisis in the world Liquidity management is now survival issue to any banks To reach to ambitious target of “leading enterprise” in Vietnam, Techcombank should take many efforts to be successful It requires Techcombank to continue pioneer business strategy and vision, and also reasonable process in risk management In liquidity risk management aspect, after learning the Techcombank’s process, I have some recommendations, as followings: 3.1 Pursuing ambitious business strategy Restructuring whole Vietnam economy with the start of bank sector has been a highlight of the year 2011 It brings opportunities and also challenges to each bank, including Techcombank In fact, the restructuring process prefers the efficient big banks From now on, it could become a game of big players such as big four state own banks, and Asia ACB, Sacombank, Eximbank, Techcombank, Militarybank,… This chance gives Techcombank good opportunity to breakthrough to be leading enterprise in Vietnam 80 Table 3.1: Techcombank’s 2012 plan Unit: VND billion No Target Total assets Total mobilized funds Loans to customers NPL Profit before tax Chartered capital Return on assets Return on equity Restructuring whole economy is an opportunity but also a challenge, despite the current economic difficulties, Techcombank’s BOD and BOM have set an ambitious plan for the year of 2012, with the growth of about 24% in total assets, 45% in mobilized funds, 54% of loans to customers; specially the profitable ratios continue at high level, ROA of 1.92% and ROE of 28.87% With wide network of more than 300 branches over the most cities in Vietnam and 8.300 staffs with talent and passion, strategic BOD and BOM, Techcombank has very strong base to be breakthrough the target A line with the reputation, impressive business result, Techcombank should continue to be pioneer in information technology It helps Techcombank to pick up the products and services 81 3.2 Investing in information technology Information technology is essential to survive of banking business sector Techcombank has paid much attention to investing in information technology but now the system begins being overload to meet very fast development demand of the bank So, Techcombank should upgrade core banking system to meet the demand It not only brings IT solution to create new products and services, but also enhances enterprise’s management issue Exact and timely data supports managers to meaningful analysis reports and make right decision It also cuts efficiently cost of operation by automatic report system, so officers don’t need to it manually Because liquidity risk management is now managed by manual All data extracts from system, and financial officer does daily solvency report in excel file, according to the SBV’s regulation Money market officer also takes time to make forecast solvency report with only known data So it is risky to a big bank like Techcombank Techcombank should invest in software or developing module from core banking system, specialized in liquidity risk management to meet development demand This new software allows Techcombank to do: - Daily solvency ratio report at the end of day as SBV’s regulation - Update solvency position intraday: to forecast solvency ratios and take any necessary actions to keep the ratios in the SBV’s and Techcombank internal’s limit - Core MCO and dynamic MCO reports at the end of the day - Stress test and scenario test (as the assumption inputs of ALM) - FTP management, Fund transfer pricing across each product of business units 82 A line with the specialized software in liquidity risk management, Techcombank should also consider significant investing in other risk management, including credit risk, market risk and operation risk A good system could support much in management and making adequate business decision Because liquidity is consequential risk, so limit these type of risks, means also improving liquidity risk management… 3.3 Systemic document on liquidity risk management BOD and BOM’s strategic vision on risk management is one of the strength of Techcombank It favors specialized units to have power to manage smoothly bank’s liquidity But the concept of top team is not enough Techcombank needs also to complete the document system related to liquidity management issue from policy in general and guidelines in details This policy should conclude some basic contents: - Basic principles in liquidity management; - Methodology - Processes and responsibilities of related units in the bank It clears the responsibilities of business line, the source of all risks that leads to liquidity risk The business units have to comply with the whole bank’s general risk framework and also liquidity risk management framework Along with the policy, bank should focus to build up the guidelines to: - Cash flows gap analysis - Stress test and scenario analysis - Limit system and limit breach escalation processes - Diversification of funding sources - Fund transfer pricing 83 - Contingency funding plan - Independent unit to make regularly liquidity report 3.4 Restructuring organization and developing HR Liquidity risk is now managed by three related units, ALM, BSM and MM department Although ALM keep very important role in orienting and allocating assets and liabilities of whole bank, specially in charge of managing liquidity risk, but now the role has not been promoted BSM is responsible for banking book, but now MM still run two books: trading book and banking book in daily actual business These things make mixed operation between trading and managing banking book purpose Techcombank should restructure more clearly not only in nominal but also in actual business, all the structure and management process should be documented Firgure 3.1: Recommended ALCO’s structure 84 ALM: Besides the strategic responsibilities of ALM have already been documented, ALM should involve and more actively manage and develop balance sheet, specially in liquidity management, some recommendations as followed: - Update, assess and make analysis monthly on fund position of whole bank; type of funding and how to allocate efficiently capital to all business divisions; - Set up the framework, orientation GAP for trading book and banking book periodically; - Orient and develop an active balance sheet to achieve bank’s goals; set up dynamic fund transfer pricing to optimize banking book; - Track and forecast macro economy policy of regulators, market change (interest rate and foreign exchange) that impacts to funding sources and assets allocation, even liquidity of the bank; - Supervise other business line in compliance with the orientation of ALCO; - Forecast efficiently development of balance sheet during the time; - Giving long term and active solutions in managing liquidity risk management to comply with SBV’s regulation and bank itself BSM: BSM now is under Treasury divisions in structure It mixes trading purpose of Treasury divisions and management of ALM So sometimes, profit and loss report does not reflect exactly trading activities efficiency of Treasury division Techcombank should consider changing the structure, so BSM could be under ALCO, independent to Treasury division BSM should focus on duties that ALCO entrusts 85 - Daily managing banking book position in line with ALCO’s framework; daily bank’s liquidity management - Daily execute borrow and lending fund if needed with treasury division; - Update and supervise the cash flows in and out from the banking book from all branches; cooperate well with branches to understand big fund providers; - Report bank book’s position daily and weekly; make analysis and suggest some solutions to ALCO if needed to improve banking book position; - Manage and ensure daily solvency report, compliant with SBV’s and internal Techcombank’s regulation; - Order directly transactions to ensure daily solvency report to related units (such as money market department, bond trading department, other business divisions,…) Other business divisions: - Compliant with orientation of ALCO; - Cooperate closely with BSM in daily business (inform fund, plan of mobilized and release fund,…); - Make the transaction as BSM’s orders for bank’s liquidity purpose (this excludes from trading purpose of business divisions to recognize exactly profit and loss for business divisions); - Treasury division needs to cooperate efficiently with BSM to optimize any banking book’s surplus or deficit A long with the change in structure, Techcombank should pay more attention to training and developing human resources Techcombank now bases much on some specific individuals, these person are very talent and responsible They have been contributing to the Techcombank’s success today 86 But in fact, relying on specific people could damage the system if any change A good system should quite independent to any individuals and could continue running well with some absents In long term, Techcombank should consider: - Organize official training courses in liquidity management subjects to improve and update knowledge, skills for all officers in charge of managing liquidity, not only manager levels as now; - Set up official guidelines that support every officer to learn and apply easily to actual; - Rotate officers once or twice per year to ensure human resources back up plan so that business always keeps running well if having any changes 3.5 Intelligent and flexible strategic in liquidity risk management Liquidity risk management is the most challenging for managers in financial nowadays Not because they don’t understand it, but it differs in each financial institution and in each condition It has no best numbers that apply for all or even for one bank during the time To manage liquidity risk efficiently, Techcombank should build up an intelligent and flexible strategic in liquidity risk management To be successful in liquidity risk management, besides setting up the policy as above, Techcombank should also develop an intelligent and flexible strategic in liquidity risk management, this strategy could base on: - Techcombank’s situation and position, itself - Vietnam financial market’s characteristics and macro economic policies - Global financial market’s influence Understand Techcombank’s position, itself is core factor to build strategic for liquidity risk management It should be built along with business plan each year, and updated whenever business targets change Because business targets’ change would lead the change of balance sheet’s structure that affects liquidity status 87 Techcombank should determine liquidity cost for each period and balance adequately and efficiently between business and liquidity purpose, based on its situation and position during the time Techcombank should also build up crisis control strategy to react in some scenarios to be active in the true cases Macro economic policies, specially monetary policy of central bank affect strongly to balance sheet development orientation of each bank, so liquidity issue So Techcombank should have updated analysis on policies to take advantages and adjust its liquidity target if any necessary Banking sector has its own business cycle, understand the cycle that supports managers to control well liquidity risk For example, at normal condition of vietnam financial market, liquidity could be divided into four phases along with one year horizon First quarter of year, it’s relax time for bank business Cash flows into bank much at this time, individuals and corporate give savings to bank and spend time for Tet holiday as tradition For the new year time, credit activities are very limited Bank tries best effort to keep credit outstanding not decrease for the time So almost banks are in fund surplus, and liquidity is very good Second quarter, business activities start in every economic industry Individuals and companies have fund demand for investment and development Savings decrease and credit increase But it’s still at beginning stage, so liquidity has not yet been a concern Third quarter, business really runs Credit increases strongly Individuals and companies withdraw money to take investment opportunities Bank is in fund balance or starts in fund deficit Liquidity becomes an issue for managers Managers begin taking necessary actions to prepare fund for year end time So Techcombank should increase promotion and marketing campaign to mobilize fund, specially long terms of months up to years for savings and longer tenor in capital market 88 Final quarter of the year, it’s always difficult time for liquidity management Payment demand is at very high level Credit grows strongly All business managers focus on opportunities to reach targets of the year Bank is in fund deficit because of high credit outstanding So Techcombank should mobilize fund respectively assets increase speed And it needs to take advantages from central bank’s support for this sensitive period Understanding economic cycle in banking sector helps Techcombank to development reasonable and efficient strategy according timeline of the year to manage liquidity risk Vietnam financial market links closer to global market So Techcombank should not only assess local market but also global market that could affect bank’s business If policy sets up minimum requirements and standards then strategy is adjusted smartly according timeline and fact to take advantages and opportunities, so these three factors all together are essential for Techcombank to set up a flexible strategy for liquidity risk management 89 CONCLUSION Liquidity risk management becomes key focus for bank’s managers and regulators in fluctuant financial markets nowadays The thesis studies international standards in liquidity risk management and SBV’s regulations for financial institutions that operate in Vietnam From theories to fact, thesis makes analysis the situation of liquidity risk management at Techcombank, one of most the most successful joint - stock banks in Vietnam during the last decade Based on the research and analysis of Techcombank’s situation, author gives some recommendations to improve the bank’s liquidity risk management I hope thesis could contribute a little to subject of liquidity risk management, a very new and interesting topic that needs to be discussed and developed more and more in Vietnam context Despite the best effort to fulfill the thesis, it exist inevitable shortcomings due to author’s knowledge and experience Thus, feedbacks and comments on the thesis are precious to author to deeper study in the next future 90 REFERENCES Vietnamese [1] Techcombank’s annual reports, (2009, 2010, 2011) [2] Techcombank’s structure and organization of ALCO and Treasury (2011) [3] https://www.techcombank.com.vn/ [4] http://www.sbv.org.vn/ [5] http://thuvienphapluat.vn/ English [6] Basel Committee on banking supervision (December 2010), Basel III: International framework for liquidity risk management, standards and monitoring [7] Basel Committee on banking supervision (September 2008), Principle for sound liquidity risk management and supervision [8] Citi corporation’s Liquidity management policy (2010) [9] Leonard Matz and Peter Neu (2008), Liquidity Risk Measurement and Management: A Practitioner's Guide to Global Best Practices, Wiley Finance [10] S.A Zenios and W.T Ziemba (2006), Handbook of Asset and Liability Management: From Models to Optimal Return Strategies, Wiley Finance [11] http://www.almprofessional.com/ [12] http://www.bis.org/ 91 ... OF LIQUIDITY RISK MANAGEMENT IN BANKS 1.1 Introduction of liquidity risk Risk occurs in any business in general and in banking sector in particular It can be said that banks run business in the... IMPROVE LIQUIDITY RISK MANAGEMENT AT TECHCOMBANK 3.1 Pursuing ambitious business strategy 3.2 Investing in information technology 3.3 Systemic document on liquidity risk management. .. ratios in operations of credit institutions Applying in fact, thesis also studies liquidity risk management at Techcombank, one of most dynamic joint stock banks in Vietnam, according to business