Title: Liquidity Supervision in Financially Viable Sector with Reference to Public and Private Sector Banks in India
Abstract: Liquidity risk in Indian banking sector is strongly influenced by structural and business cycle factors over many years. Sudden change in technological development and market globalization has posed serious challenge to the Indian banks to manage liquidity. The deposit collections made were not able to keep up with the sudden loan growth. This paper summarizes the theoretical findings on the determinants of Liquidity Management by banks. The findings are summarized in a series of predictions.