Bank liquidity- the ability of assets to be easily convertible into money. A liquid asset is an asset that can be quickly sold at a market price. Liquidity financial organization is the ratio of available assets to monetary liabilities payable. And the bank's liquidity reflects its ability to fulfill its obligations in a timely manner and in full.

A lack of liquidity in a bank can lead to its insolvency, and excess liquidity has a negative impact on profitability (“extra” money is difficult to make the bank generate income - they are not in demand by customers, so banks try to get rid of them, including through the interbank loan market). Thus, the liquidity and solvency of the bank are closely related.

The bank's main sources of liquidity are cash on hand and in accounts, and assets that can be converted into money (for example, securities). The interbank market also plays an important role, where banks can trade liquidity among themselves or buy it from the National Bank.

Bank liquidity indicators in Belarus, which are used when making decisions on the parameters of the National Bank's operations, are current liquidity and position banking system. Calculation of the bank's liquidity (meaning the current liquidity of commercial banks) is carried out by summing the Belarusian rubles on the banks' correspondent accounts with the National Bank, minus their required amount until the end of the reserve requirements fulfillment period. If the value turns out to be negative (current liquidity deficit), it reflects the amount of funds borrowed by banks from the required reserves fund (FOR), and if it is positive (excess or surplus of current liquidity) - the amount of funds in the FOR in excess of the required value.

The position of the banking system, which is also one of the indicators of liquidity, represents the banks' net claims on the National Bank on current liquidity management instruments and reserve requirements at the end of the day.

In order to improve the requirements for the safe and sustainable functioning of the banking system of Belarus, the Board of the National Bank adopted Resolution No. 180 dated May 18, 2017 "On Approval of the Instructions on the Procedure for Determining Systemically Important Banks, Non-Banking Financial Institutions and Making Amendments and Additions to Some Regulatory legal acts National Bank of the Republic of Belarus". The document entered into force on January 1, 2018.

According to the document, Basel III liquidity indicators (indicators of liquidity coverage and net stable funding), as well as requirements for reporting on their implementation and analytical information on liquidity risk monitoring tools, are established as mandatory standards for the safe functioning of banks in the Republic of Belarus.

To control the state of liquidity of a bank, a non-bank financial institution (NCO), the following liquidity ratios are established:

• liquidity coverage ratio;
• net stable funding ratio.

To supervise the state of liquidity of the Development Bank OJSC, a net stable funding ratio is established for it. The liquidity coverage ratio is designed to assess the ability of a bank, NBCO to provide a stock of highly liquid unencumbered assets at a level sufficient to timely and fully meet the obligations of the bank, NBCO in stressful conditions, accompanied by a significant shortage of liquidity, in the next 30 days. The amount of liquidity coverage is calculated as the ratio of the amount of highly liquid assets and the net expected cash outflow over the next 30 days.

The minimum allowable value of the liquidity coverage ratio is set at 100%.

These additions and changes to the current requirements of the National Bank in the field of banking supervision will help strengthen control over the risks of the banking system, as well as improve the system of capital, liquidity and liquidity risk management in banks.

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The concept of liquidity means the bank's ability to timely and fully meet its debt and financial obligations in front of all counterparties, which is determined by the presence of sufficient equity capital, the optimal placement and amount of funds under the assets and liabilities of the balance sheet, taking into account the appropriate timing. In other words, the liquidity of a commercial bank is based on the constant maintenance of an objectively necessary ratio between three components: the bank's own capital, attracted and placed funds.

Liquidity risk is the risk of loss due to the Bank's inability to meet its obligations in full. Liquidity risk arises as a result of an imbalance in the financial assets and financial liabilities of the Bank (including as a result of untimely performance of financial obligations by one or more of the Bank's counterparties) and (or) an unforeseen need for the immediate and one-time performance by the Bank of its financial obligations.

The risk of insufficient liquidity is the risk that the bank will not be able to meet its obligations in a timely manner or this will require the sale of certain assets of the bank on unfavorable terms. Excess liquidity risk is the risk of loss of bank income due to an excess of highly liquid assets, but little or no income assets and, as a result, unjustified financing of low-income assets from borrowed resources. The risk of loss of liquidity is associated with the bank's inability to meet its payment obligations within the agreed timeframe, quickly convert their assets into cash to make payments on deposits.

Insufficient liquidity leads to the insolvency of the credit institution. If a credit institution has not fulfilled its obligations to depositors in a timely manner and this has become known, a “snowball effect” arises - an avalanche-like outflow of deposits and current account balances, leading to fundamental insolvency.

Liquidity risk, on the one hand, is closely related to the mismatch of assets and liabilities (that is, the use of short, unstable liabilities for medium-term or long-term active operations), and, on the other hand, to the loss of an opportunity (due to general market conditions or a deterioration in the bank's image) attract resources to meet current obligations.

The level of liquidity risk is influenced by various factors, among them:

• the quality of the bank's assets (if the bank's portfolio contains a significant amount of non-performing and non-recoverable assets that are not secured by sufficient reserves or own funds, then such a bank will lose liquidity due to the need to fund such assets with attracted resources);
• asset diversification;
• · the interest rate policy of the bank and the overall level of profitability of its operations (the constant excess of the bank's expenses over its income can lead to a loss of liquidity);

· the amount of currency and interest rate risks, the implementation of which may lead to depreciation or insufficient return on operating assets;

• stability of bank liabilities;
• · coordination of terms of attraction of resources and their placement in active operations;

· the image of the bank, which provides it with the opportunity, if necessary, to quickly attract third-party borrowed funds.

Liquidity risk is closely related to such risks: credit, market, interest and currency. So, for example, credit risk worsens the bank's liquidity, as it leads to an imbalance in assets and liabilities in terms of terms and amounts; and market, currency and interest rate risks can cause a decrease in the value of the bank's assets or increase the value of liabilities.

A commercial bank is considered liquid if the amount of its cash and other liquid assets, as well as the ability to quickly mobilize funds from other sources, are sufficient for the timely repayment of debt and financial obligations. In addition, a liquid reserve is necessary to meet almost any unforeseen financial needs: making profitable deals on a loan or investment; to compensate for seasonal and unforeseen fluctuations in demand for credit, replenishment of funds in the event of an unexpected withdrawal of deposits, etc.

Illiquidity risk can be disclosed as the risk of balance sheet imbalance in terms of liquidity.

The balance is considered liquid if its condition allows, due to the rapid sale of funds on the asset, to cover urgent liabilities on the liability. The ability to quickly convert the bank's assets into cash to fulfill its obligations is predetermined by a number of factors, among which the decisive factor is the compliance of the timing of the placement of funds with the timing of attracting resources. In other words, what is the liability for the term, so should be the asset. Only then is the balance in the balance between the amount and term of the release of funds on the asset in cash and the amount and term of the forthcoming payment on the bank's obligations ensured.

The liquidity of a bank's balance sheet is affected by the structure of its assets: the greater the share of first-class liquid funds in total assets, the higher the bank's liquidity. Bank assets can be divided into three groups according to the degree of liquidity:

• 1) liquid funds that are immediately available, or first-class liquid funds (cash, funds on a correspondent account, first-class bills and government securities);
• 2) liquid funds at the disposal of the bank, which can be converted into cash. We are talking about loans and other payments in favor of the bank with due dates in the next 30 days, conditionally realizable securities listed on the stock exchange (as well as participation in other enterprises and banks), and other valuables (including intangible assets);
• 3) illiquid assets (overdue loans, unreliable debts, buildings and structures owned by the bank and related to fixed assets).

When analyzing the risk of illiquidity, first-class liquid funds are taken into account in the first place.

There are the following ways to assess and manage liquidity risk:

analysis and assessment of the ratio of assets and liabilities by the degree of liquidity, i.e. assets and liabilities are distributed into respective groups according to the degree of decreasing liquidity and taking into account their maturity and quality.

the gap method or ladder of terms is based on a comparison of active and passive balance sheet items, taking into account the period remaining until their maturity. promissory note endorsement deficit liquidity

One of the methods widely used for quantification entrepreneurial risks, is the analysis financial condition enterprises (firms). This is one of the most accessible methods of relative risk assessment, both for the entrepreneur, the owner of the enterprise, and for his partners.

The financial condition of an enterprise is a complex concept characterized by a system of absolute and relative indicators that reflect the availability, placement and use of financial resources of an enterprise and together determine sustainability economic situation enterprise and its reliability as a business partner.

From the point of view of assessing the level of entrepreneurial risk in the system of indicators characterizing the financial condition of enterprises, solvency indicators are of particular interest.

Solvency is understood as the readiness of an enterprise to repay debts in the event of simultaneous presentation of claims from all creditors of the company for payments on short-term obligations (for long-term ones, the repayment period is known in advance).

The use of solvency indicators makes it possible to assess at a specific point in time the readiness of an enterprise to pay creditors for priority (short-term) payments with its own funds.

The main indicator of solvency is the liquidity ratio.

The solvency of a bank depends on many factors. The Central Bank sets a number of conditions that banks must comply with in order to maintain their solvency. The most important of them are: limiting bank liabilities, refinancing banks by the Central Bank, reserving part of the bank's funds on a correspondent account with the Central Bank.

The risk of insolvency may well lead to the bankruptcy of the bank. The severity of the risk of bankruptcy is estimated by the value of the corresponding probability. If the probability is small, then it is often neglected. Of course, the probability of bankruptcy is non-zero in almost any transaction due to very unlikely catastrophic events in the financial markets, nationwide, due to natural phenomena etc., however, bankruptcies do occur. Another thing is what is their reason, who needs it, who allowed it.

In the practice of financial solvency analysis, several liquidity ratios are used, depending on the purpose and objectives of the analysis. They are used to assess whether a firm is able to meet the costs associated with its short-term liabilities or pay its bills and still remain solvent.

The absolute liquidity ratio (Kal) characterizes the degree of mobility of the enterprise's assets, which ensures timely payment of its debt, and is determined from the expression:

where Sv is the cost of highly liquid funds (cash in banks and cash desks, securities, deposits, etc.); T0 -- current liabilities of the enterprise (the amount of short-term debt).

The current liquidity ratio (K) shows the extent to which the current needs are provided by the enterprise's own funds, without attracting loans from outside, and is determined from the expression:

Ktl \u003d Sv + Ss

where C is the cost of medium liquidity funds (inventory, receivables, etc.).

Critical Appraisal Coefficient (or Litmus Test Coefficient)

kko = Cash+ Accounts receivable

Short-term liabilities

with the help of which only the most liquid current assets are evaluated: cash and marketable securities.

The above indicators (their calculated value) can serve as a guideline for assessing the financial condition of the enterprise in comparison with the standard values.

For example, theoretically, the absolute liquidity ratio should be equal to or greater than one. However, considering low probability the fact that all creditors of the enterprise simultaneously present debt claims to it, in practice the value of this coefficient can be much lower. In countries with developed market economy is considered normal if the value of the absolute liquidity ratio is not lower than 0.2 -0.25.

In practice developed countries the normative value of the current liquidity ratio for various industries ranges from 2.0 to 2.5, i.e. the optimal need of the enterprise for liquid funds should be at a level where they are approximately twice as high as short-term debt. The daily work of a commercial bank on liquidity management is aimed at the bank's self-preservation, the condition of which is the uninterrupted fulfillment of obligations to customers. From an organizational point of view, it implies compliance with the ratios of individual groups and articles of liabilities and assets of the balance sheet, fixed in certain indicators. Such indicators are divided into external and internal.

For a commercial bank, the general basis of liquidity is ensuring profitability production activities(operations performed). At the same time, the peculiarities of its work as an institution that bases its activities on the use of clients' funds dictates the need to use specific liquidity indicators.

Although the general and specific liquidity of a commercial bank complement each other, the direction of their action is mutually opposite. Maximum specific liquidity is achieved by maximizing cash and correspondent account balances relative to other assets. But it is in this case that the profit of the bank is minimal. Profit maximization requires not holding funds, but using them to make loans and make investments. Since this requires keeping cash on hand and correspondent account balances to a minimum, profit maximization jeopardizes the continuity of the bank's fulfillment of its obligations to customers.

Carrying out such work requires appropriate operational and information support. The bank must have up-to-date information about its available liquid funds, expected receipts and forthcoming payments. It is advisable to present such information in the form of schedules of receipts and payments arising from the obligations assumed for the corresponding period (decade, month, etc.). It is the basis for considering a package of loan offers for a given period.

The banking management mechanism that ensures the implementation of this target function has significant features. Traditionally, like any commercial enterprise profit maximization is achieved by increasing revenues and reducing costs. However, the content of these indicators for commercial banks is specific. They do not include the total (gross) turnover of bank revenues, but only that part of it that ensures the formation and use of profits.

The main element of turnover - the issuance and repayment of loans - is regulated in accordance with the laws of movement of the loaned value. The volume of the bank's gross profit depends on the size of the loaned funds and on their price, i.e. interest rates. The effect of each factor, in addition to the natural influence of market conditions, depends on specific liquidity requirements.

The amount of credit investments of a commercial bank is determined by the volume of own and borrowed funds. However, in accordance with the principles of bank regulation, the entire amount of these funds cannot be used for lending. Therefore, the task of the bank is to determine the volume effective resources, which can be directed to credit investments.

Liquidity risk is closely related to the value of liquidity ratios. Liquidity risk is associated with possible financial losses in the process of transforming securities or other inventory items into cash necessary for the timely fulfillment of its obligations by the enterprise or when changing the strategy and tactics of investment activities.

Financial losses during the transformation of resources include: depreciation of liquid funds; partial loss of capital in connection with the sale of an object of construction in progress; sale of certain securities during the period of their low quotation; taxes and fees, payment of commissions to intermediaries, and other payments made in the process of liquidation of investment objects, etc.

Thus, the lower the liquidity of the investment object, the higher the possible financial losses in the process of its transformation into cash, the higher the risk.

The purpose of liquidity management is to ensure the Bank's ability to timely and fully meet its monetary and other obligations arising from transactions involving financial instruments.

Liquidity management is also carried out for the following purposes:

• · identification, measurement and determination of an acceptable level of liquidity;
• · determining the Bank's need for liquidity;
• · continuous control over the state of liquidity;
• taking measures to maintain a non-threatening financial stability the Bank and the interests of its creditors and liquidity risk depositors;
• · creation of a liquidity management system at the stage of a negative trend, as well as a system for a quick and adequate response aimed at preventing the achievement of liquidity of a critical size for the Bank (minimization).

In the process of liquidity management, the Bank is guided by the following principles:

• liquidity management is carried out daily and continuously;
• The applied methods and tools for assessing liquidity risk should not contradict regulatory documents Central Bank of the Russian Federation, risk management policy;
• · The Bank clearly shares the powers and responsibilities for liquidity management between the governing bodies and divisions;
• · limits are set to ensure an adequate level of liquidity and appropriate to the size, nature of the business and financial condition of the Bank;
• · information about the future receipt or write-off of funds from departments is immediately transferred to the Organizational and Control Department;
• · when making decisions, the Bank resolves the conflict between liquidity and profitability in favor of liquidity;
• · each transaction affecting the state of liquidity must be taken into account the liquidity risk. When placing assets in various financial instruments, the Bank strictly takes into account the urgency of the source of resources and its volume;
• holding big deals is analyzed on a preliminary basis for their compliance with the current state of liquidity and the established limits;
• · Planning of the need for liquid funds is carried out.

Liquidity management methods.

To assess and analyze the risk of loss of liquidity, the Bank uses the following methods:

• Method of coefficients (normative approach);
• · a method for analyzing the gap in the maturities of claims and liabilities with the calculation of liquidity indicators: liquidity surplus/deficit, liquidity surplus/deficit ratio;
• · Forecasting cash flows.

The coefficient method includes the following steps.

• 1st stage: calculation of the actual values ​​of the required instantaneous (N2), current (N3), and long-term liquidity ratios (N4) (together in the text of this Regulation are referred to as liquidity ratios) and their comparison with the allowable numerical values ​​established by the Bank of Russia. Liquidity ratios are calculated daily on an ongoing basis.
• 2nd stage: analysis of changes in the actual values ​​of the liquidity level in relation to the calculated ratios for the last 3 months (dynamics of liquidity ratios).

In the course of liquidity risk management, the following liquidity limits are set:

current liquidity limit in the form of an absolute amount - the maximum amount of liquidity deficit (excess of liabilities over assets)

prospective liquidity limit in the form of a relative indicator: the limiting liquidity deficit ratio, which is the ratio of the liquidity deficit on an accrual basis and the bank's assets

As a current liquidity limit, they usually set the maximum amount of liquidity deficit for a period of up to 1 month. The limit is maintained by calculating the volume of non-performing assets (correspondent account and cash desk), which should ensure settlements on "demand" and term funds.

The prospective liquidity limit is an aggregate indicator - the marginal liquidity deficit ratio.

The bank's asset and liability management strategy directly affects the planning of liquidity risk and related limits. The size of the limit is determined by the bank's liquidity policy - conservative or aggressive. In the first case, there is no current liquidity deficit and the limit is 0. In the second case, it should be equal to the volume of possible funds raised in the interbank lending market and the volume of funds from the sale of highly liquid assets.

The conservatism of the bank's policy implies the absence of a gap between assets and liabilities within the same term group or placement for periods shorter than the terms of attracted liabilities. At the same time, the prospective liquidity limit will be close to 0. An aggressive policy involves an increase in the prospective liquidity limit, that is, an increase in the scope in which the terms of assets can exceed the terms of liabilities. According to experts, the upper limit of deviations should be such that by the time the term group "up to 1 month" is reached, the gap is within the current liquidity limit.

Practical part

Task: The investor put 100 thousand rubles on the deposit. Two years later, the amount of the deposit amounted to 120 thousand rubles. Determine the annual simple interest rate.

i =(S/P-1)/n or i =(S/P-1)/n*100

i=(120 thousand rubles /100 thousand rubles -1)/ 2 years =0.1 or 10% per annum.

Answer: 10% per annum.

The accrual of simple interest is resorted to when issuing a loan for up to 1 year or when interest is not added to the principal amount of the debt, but is paid periodically.

To write the simple interest formula, we will use the following notation:

I - the amount of money accrued on the initial amount of interest for the entire period (the amount with interest is the initial amount)

P - initial amount of debt (deposit)

S -- amount at the end of the term (original amount + interest cash amount)

i - interest rate, decimal fraction. For example, if the interest rate is 20%, then in the calculations you need to use 0.2 \u003d 20% / 100

n - loan term in years

The formula for accrued interest for the entire term

Simple interest formula

S=P+I=P+Pni=P(1+ni) (II)

Calculation of the initial amount of debt using the simple interest formula

P=S/(1+ni) or P=S/(1+ni/100) if i is measured in % (III)

Calculating the annual interest rate using the simple interest formula

i=(S/P-1)/n or i=(S/P-1)/n*100 if you need to get the interest rate (IV)

Calculation of the loan term using the simple interest formula

Liquidity is one of key concepts in economics. In general, it is needed so that investors and lenders can understand how profitable an investment in a particular asset is.

For reference: assets are the means of a business entity from which it is planned to receive benefits.

What is liquidity in simple words

Liquidity is the ability of assets to turn into cash without any loss. The faster an asset is converted into money, the more liquid it is.

The essence of this term can be best understood with a simple example. Let's say you have several assets: real estate, demand bank deposits, and securities. Which one will be more liquid? To answer this question, you need to understand which of the following can be quickly realized or converted into cash without loss? Real estate is currently quite difficult to sell, in addition, for this it will be necessary to bear the cost of paperwork, etc., not to mention significant time costs.

As for the possibility of selling securities, this is influenced by many factors: their type, maturity, market situation, exchange rates, quotes, etc. In any case, it is obvious that their implementation will require significant moral and financial costs.

Demand deposit means investing money in a bank with the possibility of withdrawing it at any time. Accordingly, this asset is the most liquid as you can convert the cash deposit into as soon as possible without incurring any costs. And if you may need money at the next moment of time, then he is the best option from those offered.

Let's turn to our example. Demand deposit, as we found out, is the most liquid asset. However, it is also the least profitable. As a rule, the interest rate in banks on it is minimal. Accordingly, this asset is also the least risky. Those. the risks of losing money in this case are reduced to almost zero.

Investments in real estate are more profitable, but also more risky. There is always the possibility of a fall in the value of housing in price. Finally, investing in securities is the most risky type of investment. After all, it is extremely difficult to determine how, for example, stock quotes on the stock exchange will change. Accordingly, the highest risks are observed here. Risk, therefore, acts as a price for high income.

Knowing the basics of liquidity is important not only for individual investment, but also for the functioning of banks and companies.

Enterprise liquidity

Species classification

The above example will help to understand the types of liquidity of the enterprise. According to the degree of ability to convert assets into cash, they are divided into several types:

• highly liquid (A1);
• quick liquidity (A2);
• slowly liquid (А3);
• hard liquid (A4).

The most liquid asset is money, because it does not need to be manipulated in order to convert it into cash. It is customary to include receivables that do not exceed one year to quickly liquid assets. Slowly liquid assets include: receivables over a year, work in progress, inventories, VAT. Hard-to-liquid assets are non-current assets (buildings, structures) that have a long sale period.

Knowledge of the types of liquidity is necessary in order to correctly assess how creditworthy and solvent an enterprise is. These two seemingly similar concepts differ in the following way. Creditworthiness shows the ability of an enterprise to repay obligations with the help of highly liquid and quick liquid assets. And solvency - with the help of assets of all types. Accordingly, the calculation of solvency indicators is important for assessing the financial condition of a company in the event of its liquidation or sale. Creditworthiness is needed, first of all, by creditors to assess the cost of borrowed capital.

Video - about the company's liquidity indicators:

The liquidity of the enterprise is the ability of the company to repay obligations in the shortest possible time. She demonstrates her financial stability. The liquidity of an enterprise means that it has current assets in an amount that is sufficient to fulfill short-term obligations. In general, an enterprise can be considered liquid if the amount of current assets exceeds the amount of short-term debts.

Liquidity ratios: balance sheet formula

Indicators and ratios are used to assess the level of liquidity. They can be either absolute or relative. The absolute numbers are:

• current liquidity;
• prospective liquidity.

Relative indicators are represented by the following liquidity ratios:

• current;
• fast;
• absolute.

The level of liquidity is calculated by comparing assets by the degree of liquidity (in the numerator) and liabilities (liabilities) in the denominator. Therefore, to calculate liquidity ratios, one should refer to the balance sheet of the enterprise. The differentiation of assets by the level of liquidity was presented above. Therefore, we will now deal with liabilities (liabilities in the balance sheet). They are divided according to the level of increasing deadlines:

• the most urgent liabilities (P1): raised funds;
• mid-term liabilities (P2): short-term debts;
• long-term liabilities (P3);
• permanent liabilities (P4) (own capital).

A1 exceeds P1;
A2 is higher than P2;
A3 is greater than P3;
A4 exceeds P4.

To begin with, let's consider methods for calculating absolute liquidity indicators.

Current liquidity is needed to reflect the absolute amount of coverage of short-term liabilities with the help of the most liquid assets (A1 and A2). Respectively, formula for calculating current liquidity presented as:

Current liquidity\u003d (A1 + A2) - (P1 + P2)

Prospective liquidity is needed to calculate the absolute value of the excess of A3 (slowly sold assets) over long-term liabilities (P3). The formula looks like this:

Prospective liquidity= A3 - P3

It is needed in order to calculate the company's ability to fulfill its obligations with the help of working capital(which includes all assets except A4).

Current liquidity ratio = (A1 + A2 + A3) / (P1 + P2).

Formula (balance lines): (1200 - 1230 - 1220) / (1500 - 1550 - 1530).

Quick liquidity ratio is needed in order to calculate the possibility of fulfilling short-term obligations using the first two groups of assets (A1 and A2).

Quick or urgent liquidity ratio = (A1 + A2) / (P1 + P2).

Balance formula (lines): (1230 + 1240 + 1250) / (1500 - 1550 - 1530).

Helps to calculate the ability to fulfill short-term obligations using A1, i.e. highly liquid assets.

Absolute liquidity ratio = A1/ (P1 + P2).

This indicator is needed to calculate the financial reliability of the enterprise.

Formula for balance line numbers: (1240 + 1250) / (1500 - 1550 - 1530)

As you can see, the calculation formulas differ only in numerators. The denominator remains unchanged.

For bank

The concept of liquidity is also necessary for successful banking. At the same time, it is important for the bank not only to correctly assess the liquidity of the borrowing company for a reasonable issuance of a loan. It is also necessary to take into account your own liquidity in order to meet the banking performance indicators set by the Central Bank and stay afloat in the banking business.

For the analysis of banking activity, indicators similar to the analysis of the liquidity of an enterprise are used. To do this, the following banking standards are used, established by the Instruction Central Bank of the Russian Federation No. 139-I:

• H1 is a whole group of indicators, which includes:

H1.0 - reflects the sufficiency own funds bank and is the main indicator of banking activity. It is for non-fulfillment of this indicator that a large number of banking licenses. The minimum value for today is set by the Central Bank of the Russian Federation in the amount of 8%.

H1.1 - shows the adequacy of the basic capital. The minimum value is 4.5%.

H1.2 - shows the capital adequacy and is set at 6%.

• Н2 – instant liquidity ratio. Shows the bank's ability to repay its obligations within one business day. The minimum allowable value is 15%.
• H3 is the current liquidity ratio. Reflects the ability of a credit institution to fulfill its obligations over the next 30 days. The minimum level of the standard is 50%.
• Н4 – long-term liquidity ratio. Demonstrates the ability of a credit institution to withstand the risk of default on its obligations due to the placement of funds in long-term assets. The maximum value of the indicator is set at 120%.

These are the main liquidity ratios, although the Instruction also highlights others.

For securities

The concept of liquidity is widely used in the securities market when investing. So, securities are distinguished by the level of liquidity.

One of the most liquid securities is a bond, especially a government one. Since its issuer (that is, the one who issued it) is the state, the level of trust in which is traditionally higher than in private companies, the risk of default on it is minimal. However, according to the golden rule of investing presented above, the return on such a security will be minimal. A corporate bond will be considered a more liquid security. Its issuer is a private company. At the same time, the closer the maturity of a bond, the more liquid it is.

Stocks are less liquid than bonds. Among them, the most liquid are the shares of the largest reliable companies and banks, the so-called "blue chips". These include, for example: Gazprom, VTB, Sberbank, etc. Since these companies are practically not threatened with bankruptcy, the risk of investing in them is minimized. However, their profitability is minimal. Among the shares, the least liquid are the shares of new companies that have not yet had time to widely establish themselves in the market. So, one of the most risky investments is investments in shares of venture capital firms. However, the yield on them will be significantly higher than from investing in blue chips.

This is what concerns classical securities. However, there are even less known derivative financial instruments for Russia: futures, forwards, options, etc. These securities are less liquid because the risk of investing in them is the most significant.

Thus, the calculation of liquidity ratios is important not only at the enterprise. Neither a bank, nor private investors, nor even an ordinary household can do without it.

Definition

Liquidity- the ability of assets to be quickly sold at a price close to the market. Liquidity - the ability to turn into money (see the term "liquid assets").

Usually, highly liquid, low liquid and illiquid values ​​(assets) are distinguished. The easier and faster you can get the full value of an asset, the more liquid it is. For a product, liquidity will correspond to the speed of its sale at a nominal price.

In the Russian balance sheet, the company's assets are arranged in descending order of liquidity. They can be divided into the following groups:

A1. Highly liquid assets (cash and short-term financial investments)

A2. Marketable assets (short-term receivables, i.e. debt, payments on which are expected within 12 months after the reporting date)

A3. Slowly realizable assets (other, not mentioned above, current assets)

A4. Hard-to-sell assets (all non-current assets)

Liabilities of the balance according to the degree of increase in the maturities of obligations are grouped as follows:

P1. The most urgent liabilities (raised funds, which include current accounts payable to suppliers and contractors, personnel, budget, etc.)

P2. Medium-term liabilities (short-term loans and borrowings, reserves for future expenses, other short-term liabilities)

P3. Long-term liabilities (section IV of the balance sheet "Long-term liabilities")

P4. Permanent liabilities (own capital of the organization).

To determine the liquidity of the balance sheet, the totals for each group of assets and liabilities should be compared. Liquidity is considered ideal if the following conditions are met:

A1 > P1
A2 > P2
A3 > P3
A4< П4

For example, the above analysis of liquidity by group can be performed automatically in the Your Financial Analyst program.

Calculation of liquidity ratios

In practice financial analysis There are three main indicators of liquidity.

Current liquidity

The current (total) liquidity ratio (coverage ratio; English current ratio, CR) is a financial ratio equal to the ratio of current (current) assets to short-term liabilities (current liabilities). This is the most common and commonly used measure of liquidity. Formula:

Ktl \u003d OA / KO

where: Ktl - current liquidity ratio;
ОА - current assets (attention: until 2011, long-term receivables were indicated in the Balance as part of current assets - it must be excluded from current assets!);
TO - short-term liabilities.

The ratio reflects the company's ability to repay current (short-term) liabilities at the expense of current assets only. The higher the indicator, the better the solvency of the enterprise.

A coefficient value of 2 or more is considered normal (this value is most often used in Russian regulations; in world practice, it is considered normal from 1.5 to 2.5, depending on the industry). A value below 1 indicates high financial risk associated with the fact that the company is not able to consistently pay current bills. A value greater than 3 may indicate an irrational capital structure.

Quick liquidity

Quick ratio (sometimes called intermediate or urgent liquidity; English quick ratio, QR) is a financial ratio equal to the ratio of highly liquid current assets to short-term liabilities (current liabilities). The source of data is the company's balance sheet in the same way as for current liquidity, but inventories are not taken into account as assets, since if they are forced to be sold, losses will be maximum among all working capital. Quick liquidity formula:

Kbl \u003d (Short-term accounts receivable + Short-term financial investments + Cash) / Current liabilities

The ratio reflects the company's ability to repay its current obligations in the event of difficulties with the sale of products.

A coefficient value of at least 1 is considered normal.

Absolute liquidity

The absolute liquidity ratio is a financial ratio equal to the ratio of cash and short-term financial investments to short-term liabilities (current liabilities). The source of data is the balance sheet of the company in the same way as for current liquidity, but only cash and funds close to them in essence are taken into account in the composition of assets:

Cal = (Cash + short-term financial investments) / Current liabilities

Unlike the two above, given coefficient not found wide distribution in the west. According to Russian regulations, a coefficient value of at least 0.2 is considered normal.

The coefficient of current, quick and absolute liquidity can be automatically calculated according to the balance sheet in the program "