Contributor: Rich Chapman

"Shortage in liquidity will kill you instantly and excess liquidity will kill you over time" is a well-known industry saying which serves as a very real warning to banks across the globe of the dangers of poor liquidity management. These dangers are highlighted even more starkly by the waves of change that are washing over the banking world, ranging from Europe’s painfully drawn out debt issues to last month’s revelations that four major US banks failed their latest rounds of stress tests. All in all, banks’ liquidity management strategies (or lack of) are very much under the spotlight. ... read more