Liquidity Risk

Liquidity risk: the risk that in case of planned and unexpected payments can not be made in a time and effective manner, and the payments can not be provided through additional resources.

The main risk factors of liquidity risk; the low quality of assets, invalid interest rate policy, inappropriately requirements involved in the deployment of resources (including loans); the emergence of the risk of the reputation; decline in the loan portfolio and decline of the level of quality and profitability.

Functioning as a reliable and stable bank in the banking sector "Ziraat Bank Azerbaijan" is very important. And the bank attentive to the importance of proper regulation of funds with maintaining liquidity position of the bank. 

To avoid such risk, the bank is liable to deploy resources effectively in order to achieve profitability, liquidity risk, which is the possibility of the provision of financial resources to the creation of channels, proper management of asset-liability duration of the works. The bank is using the implementation of limits in bank operations for managing liquidity risk.