Evaluation the liquidity of commercial bank (on the example of the Commercial bank Kyrgyzstan, OJSC) - Курсовая работа

THE MINISTRY OF EDUCATION AND SCIENCE OF THE KYRGYZ REPUBLIC INTERNATIONAL ATATURK ALATOO UNIVERSITY ECONOMICS AND ADMINISTRATIVE SCIENCES FACULTY FINANCE AND CREDIT DEPARTMENT Evaluation the liquidity of commercial bank (on the example of the Commercial bank Kyrgyzstan, OJSC) Senior Thesis By Israilova Zh. Thesis Advisor: Atabaev N. Bishkek - 2017 THE MINISTRY OF EDUCATION AND SCIENCE OF THE KYRGYZ REPUBLIC INTERNATIONAL ATATURK ALATOO UNIVERSITY ECONOMICS AND ADMINISTRATIVE SCIENCES FACULTY FINANCE AND CREDIT DEPARTMENT Evaluation the liquidity of commercial bank (on the example of the Commercial bank Kyrgyzstan, OJSC) Senior Thesis By Zhanylkan Israilova ID 12020303700 Thesis Advisor: Dr. Nurlan Atabaev, Ph.D. of Economic Sciences Date of submission: Head of Department: Kuban Zhumanazarov Date of submission: Bishkek - 2017 Table of contents Introduction Chapter I. Theoretical foundations of liquidity of commercial bank 1.1 Understanding of term liquidity of bank and factors that define them 1.2 Concept of liquidity risk and management approaches 1.3 Indicators of liquidity in the world and domestic banking practice Chapter II. Analysis of liquidity Commercial bank KYRGYZSTAN, OJSC 2.1 Short economy characteristics of Commercial bank KYRGYZSTAN, OJSC 2.2 Analysis the Balance sheet of Commercial bank KYRGYZSTAN, OJSC 2.3 Liquidity assessment and management politics of Commercial bank KYRGYZSTAN, OJSC Chapter III. Bank portfolio management 3.1 Conclusion during the analysis 3.2 Recommendation to the bank portfolio management Conclusion Bibliography Annexes Introduction As stated in the Banking legislation of the Kyrgyz Republic in article 3 one of the main tasks of the National Bank of Kyrgyzstan is to maintain the purchasing power of the national currency, security and reliability of banking and payment system of the state, to develop and support economic growth in the Kyrgyz Republic. In historical practice of many countries we see a trend that the banking system can, to develop the countrys economy and slow it down. Therefore, competent, efficient ability to manage banking institutions is a priority of the long-term strategy to the improvement the economy of the state. A modern banking system is one of the most important sectors of the national economy of all governments. Banks have always occupied and will occupy a Central place in the management of the economy. The variety and complexity of changes occurring in the banking industry necessitate deep reflection and need to develop effective approaches to the mechanism of realization of functions of commercial banks in the system of market relations. Indicators for sustainable financial functioning of the Kyrgyz commercial banks play nowadays a significant role. The Banks financial sustainability is not just an attribute of modern politics, but also the development strategy of credit institutions. One of the main objectives of Bank management is to ensure sufficient liquidity. As for the economy and for the banking system as a whole, the issue of liquidity is a matter of trust and satisfy the needs of different sectors of the economy in providing calculations, credit resources and Deposit of funds. Correct assessment of the level of liquidity and effective management refers to the most important issues of activities of credit organizations and is an essential component of banking strategy. In terms of economic stability compliance with the liquidity and solvency of the Bank, the means to maintain them in order to ensure profitability, reliability and sustainability are important. You can also mention a few of the reasons why liquidity is a key activity of banks. First, liquidity is a crucial criterion in the eyes of the customers of the Bank and future investors, which suggests that the banking institution is actually a stable, reliable and financially stable. Second, modern commercial banks, as a rule, are universal and have not only traditional banking services but also they are making active operators of the currency market, securities market providing insurance services emit e-money and perform many other operations. That say that a Bank liquidity crisis can lead to the state many problems in different sectors of the economy. The third reason comes from the history of the global financial crisis of 2008-2009. Which was the cause of the loss of confidence in financial intermediaries by the economic counterparties. The result is a substantial reduction in the volume of transactions in the interbank credit market and there was a significant outflow of the banks corporate and retail customers. These factors, as well as the imbalance of assets and liabilities in terms of the number of banks has led to serious financial difficulties. For the period from October 2008 to March 2009 due to the crisis and liquidity problems 50 world-scale banks were deprived of licenses. This practice has forced banks with a cautious approach to the problem of liquidity risk a