LIQUIDITY PROVISION IN BANKS THROUGH EFFECTIVE ASSET–LIABILITY MANAGEMENT

This article is based on investigation of liquidity provision process in commercial banks on the basis of the caseof National Bank of Uzbekistan from the point of view of assets and liabilities management. Liquidity is not viewed asa stand-alone measure, but is more likely considered as an outcome of asset profitability, financial stability of fundingsources and the maturity of cash flows. The study examines the role of composition of assets, structure of loan portfolio,cost of funding and maturity profile of liabilities on the liquidity position of the bank. In addition, the causes of mismatchesbetween assets and liabilities and its implication on the liquidity performance of the bank are analyzed. The findings showthat bank liquidity requires not only compliance with regulatory ratios but also strategic balance sheet management