The 2023 series of bank collapses has underscored the vital importance of effective liquidity risk management in the banking industry. Liquidity risk in bank, with its potential to trigger bank runs and destabilize the global financial system, requires a comprehensive approach that considers market volatility, regulatory changes, and evolving business models. Collaboration among banks, regulators, and stakeholders is crucial at the system level. Lessons from past crises, including the Global Financial Crisis of 2008, highlight the need to improve liquidity risk management practices in bank, particularly for commercial banks facing scenarios of bank runs. Applying insights from foreign bank collapses to Vietnamese banks can enhance their risk management frameworks. |
