|
|
|
|
Author/Editor:
|
Sanya, Sarah ; Mitchell, Wayne ; Kantengwa, Angelique
|
|
|
|
|
|
Publication Date:
|
January 01, 2012
|
|
|
|
Electronic Access:
|
Free Full text
(PDF file size is 1,280KB).
Use the free
Adobe Acrobat Reader
to view this PDF file
|
|
|
Disclaimer: This Working Paper should not be reported as representing the views of the IMF.
The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate
|
|
|
|
|
Summary:
This paper analyses the prudential liquidity management framework, in particular the quantitative indicators employed by the central bank of Rwanda in response to the domestic liquidity crisis in 2008/09. It emphasises that the quantitative methods used in the monitoring and assessment of systemic liquidity risk are inadequate because they did not signal the liquidity crises ex-post. There are quick gains to be made from augumenting the liquidity risk indicators with more dynamic liquidity stress tests so that compliance will be achieved through lengthening the maturities of both assets and liabilities on the balance sheet as opposed to simply holding more liquid assets. The paper recommends that policy emphasis shift toward reforms that strengthen systemic liquidity risk assesment, monetary policy implementation as well as improve the efficiency of Rwanda’s financial system.
|
|
|
|
Order a print copy
|
|
|
|
|
|
Series:
|
Working Paper No. 12/20
|
|
|
|
|
|
Subject(s):
|
Bank supervision | Banking sector | Developing countries | Liquidity management | Monetary policy | Rwanda
|
|
|
Author's Keyword(s):
|
JEL Classification Numbers: Keywords: Liquidity risk | Rwanda | regulation | supervsion | stress testing |
|
|
|
|
|
|
|
|
