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Business, 17.03.2020 02:21 dolltan

Bank managers must maintain adequate liquidity and capital, and banks must manage the risks they face in order to protect their liquidity and capital positions. Failure to manage these risks effectively can lead to, at a minimum, greater regulatory scrutiny and limits on the bank’s activities. At worst, a failure to maintain adequate capital and liquidity can lead to the bank being taken over by bank regulators, shareholders losing their investments, and bank managers being targets of legal action.

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