AN EMPIRICAL EXAMINATION OF LIQUIDITY RISK MANAGEMENT WITH SPECIAL REFERENCE TO VIJAYA BANK

Liquidity is a matter of cash flow as they pass through the balance sheet and income statement on continues basis. Liquidity risk present when, for whatever reason, this flow is endangered, if there is a demand for cash, particularly if it comes from outside the organization, it must be satisfied. The objective of liquidity risk management is to understand how cash flows are moving within an organization, to identify the existence and location of cash flow strains by measuring liquidity pressures, and to take corrective actions to prevent these pressures from growing liquidity needs (Taylor, 2001).