Degree
Master of Business Administration
Faculty / School
Faculty of Business Administration (FBA)
Advisor
Shabih Haider, Visiting faculty, Institute of Business Administration
Project Coordinator (Internal)
Dr. Nasir Afghan, Asad Ilyas, Salma Mirza
Client
UBL
Committee Member 1
Shabih Haider, Institute of Business Administration, Karachi
Project Type
MBA Research Project
Keywords
https://ir.iba.edu.pk/do/search/?q=UBL&start=0&context=8598587&facet=">UBL, Liquidity, Risk management, Financial innovation, Colossal liquidity crisis
Abstract / Summary
The main purpose of this report is to give an insight about how liquidity is managed at commercial banks especially in Pakistan. We did not limit ourselves to Pakistani banking system but we also studied a few western banking systems as well who are practicing this liquidity risk management for a slightly longer period of time. We mainly relied on secondary data for concept development and studied reports from different international advisory and supervisory committees such as Basel committee on banking supervision, European Central Bank’s working papers, different consultative articles by a few renowned consultants like Deloitte, PricewaterhouseCoopers, international financial reporting standards and others. To get Pakistani perspective we extensively used State Bank’s publications, notices and circulars. We also interviewed five big banks’ treasury personnel to study their risk management policies and procedures. We also interviewed personnel in central bank of Pakistan who updated us on the industry practices and what the central bank is planning to do about it. Our project report is analytical which not only revolves around liquidity management practices but also suggests improvements in the banking liquidity framework. After the concept development stage we studied the recent financial crunch and a few case studies e.g. Baring Bank which is a very famous case whose asset liability mismatch led to their insolvency and similarly Credit Lyonnais bank who also played dangerously and got wiped out in a very short period. The last part and the most important part of the report belong to the industry findings. After delivering the holistic view on the subject with international and local exposure, we gathered data about Pakistani banks and performed the industry analysis. The main sources of data were State banks’ website, financial statements of commercial banks and interviews with treasury personnel. We took balance sheets to carry out liquidity analysis of top banks in Pakistan. We also studied their deposit mix and deposit patterns.
Recommended Citation
Kazmi, A., Imran, M., Tauseef, M., Baloch, N., & Tariq, R. (2011). Liquidity risk management framework for UBL (Unpublished graduate research project). Institute of Business Administration, Pakistan. Retrieved from https://ir.iba.edu.pk/research-projects-mba/189
