Computing Skills in Forecasting for Liquidity Risk Management in the Indian Banking Industry

Abstract

Liquidity Risk Management (LRM) in the banking industry happens at two levels: (1) the Central Bank (i.e. the regulator) and (2) the commercial banks. The term “liquidity” for the Central Bank means the monetary base consisting of the currency and the reserves in the banking system. These are the supply side of the interest rate market. The Central Bank being the only supplier of the same can target the interest rates by varying supply of monetary base and vice versa. There are several ways including auctioning and redeeming the government securities for squeezing and pumping liquidity into the system. However, before such recourse, the Central Bank needs an assessment of the liquidity requirement of the system and applies the forecasting techniques, which are mostly econometric by nature involving the time series data. This chapter explores this process.

Unmasking Deception: Forensic Accounting's Influence on Fraud Reduction in India's Banking Industry

“…Forensic accounting emerged as a tool not only for fraud prevention but also for rebuilding trust in the banking sector. Das and Kumar (2016) delved into the challenges faced by forensic accountants in the Indian banking industry. The study identified issues such as limited resources, evolving fraud methodologies, and the need for continuous training.…”

An Empirical Study of Cash Management Practices with reference to Construction Sector in Visakhapatnam District of Andhra Pradesh, India

“…It further observes that finance decisions relate to how the investment in working capital is to be allocated. Therefore, the paper examines the cash management practices of the construction firms and their efficiency in managing the funds in increasing the profitability of the firms [6][7][8].…”