Germane Issues and Physiognomies of Bank Liquidity Risk

The complexity of liquidity risk in nature makes its precise definition a very cumbersome task. Though, it is the lifeblood of any organization it has not been given attention until recent. The given attention by the stakeholders does not commensurate with its importance. Indeed, the survival of a banking institution as well as the success of the whole financial system depends on availability of liquidity and ability to understand the rudiment of its risk for proper mitigation. This paper makes a bold attempt to shed more light on important issues related to liquidity risk and also examines some of its important features