Aspects of liquidity risk management: case of Lithuanian commercial banks

Abstract

Since commercial banks mostly operate with borrowed financial resources and financial crisis turmoil had a major influence on banking sector, precise understanding and management of the liquidity risk is obligatory for any commercial bank. In order to control liquidity risk most banks still use financial ratios: traditional, progressive and additional liquidity measures. The aim of this paper is to analyse liquidity risk from theoretical approach and study liquidity risk ratios in the chosen Lithuanian commercial banks (AB “Ūkio bankas”, „AB „Swedbank“, AB „DnB Nord bank“).