Basel Measurement and Liquidity Risk Management Supervised by the Operating Banks in Gaza Strip

Abstract

AbstractThis research aims to assess the reality of strategies and systems management controlling the risks of banking liquidity. This was adopted by the banks operating in the Gaza Strip through the elaboration of an integrated framework to help to develop these systems in accordance with the measurements and standard control used in international banking "the requirements of the convention on the Basel committee II". The most important results of this research are the efficiently managed cash at banks operating in the Gaza Strip, and senior management commitment departments activities due to banking liquidity strategy and liquidity risk managements. Developing effective controls on liquidity for most banks have also been succeeded in addressing a high proportion of wallet bad debts and those working with independent internal audit function, and raise their reports directly to the Governing Council. It is difficult for banks operating in the Gaza Strip to measure liquidity risk in according to Basel II approach, due to the lack of preconditions to apply these methods and contemporary standards, as banks using the standard method of measuring the liquidity risk, Palestinian monetary authority (PMA) not giving the banks operating in the Gaza Strip in the chance for adopting the suitable approach to calculate the liquidity in accordance to the Basel II approach. The banks operating in the Gaza Strip trays to apply the Basel Committee II declaration on the management and supervision of banking risks, and to assess the reality of policies impacts on the banks efficiencies, and regulations adopted by these banks to manage their liquidity risk in accordance with the international standards and guidelines.