Liquidity Management refers to the planning of cash flows to meet short and long term...

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Accounting

Liquidity Management refers to the planning of cash flows to meet short and long term liquidity needs, as well as meeting regulated reserve requirements. Specifically, under Basel III, banks are required to hold high-quality liquid assets (HQLA). In this assignment, you will discuss how liquidity became an issue for some banks during the Global Financial Crisis of 2007-2009 and how the regulations under Basel III are meant to address those issues. Your discussion should include a thorough description of HQLA, why not all bank assets are considered HQLAs, and the consequences the HQLA requirements have on a banks profitability.

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