Take steps now to handle liquidity risk

Description

Abstract: As a result of the coronavirus (COVID-19) pandemic, businesses and banks are suffering under nearly unprecedented economic pressures that are likely to play out for some time. This article notes that it’s more important than ever for community banks to set up appropriate strategies, policies, procedures and limits to manage and mitigate their liquidity risk. These may include ensuring effective board and management oversight and implementing appropriate liquidity risk measurement and monitoring systems, among other steps.