Strategies for Managing Liquidity Risks in UK Banking Sector: A Study on Barclays Plc

To evaluate strategies undertaken by the
UK banking sector for managing risks
associated with liquidity aspects: A study
on Barclays Plc
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Contents
Contents...........................................................................................................................................2
1. INTRODUCTION.......................................................................................................................3
1.2 Problem statement.................................................................................................................3
1.3 Conceptual framework..........................................................................................................3
1.4 Purpose of the research.........................................................................................................3
1.5 Research questions................................................................................................................4
1.6 Structure of the research........................................................................................................4
LITERATURE REVIEW................................................................................................................5
REFERENCES..............................................................................................................................13
online:............................................................................................................................................13
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1. INTRODUCTION
1.1 Background
Liquidity introduces to how assets can be converted into cash in easier way. It is an
amount of money that is available for spending and investment. It includes of notes, cash, bonds,
treasury bills and any other assets, which can be sold speedily. There are certain factors that
directly affects liquidity position of an organisation. These are obsolete inventory, bad debt, tight
credit i.e. expensive or less trade credit.
Barclays Plc is a multinational investment bank that provides financial services to the
customers. Barclays Plc was founded in 17 November 1690 by the Nigel Higgins and
headquartered in London, England, UK. Barclays Plc deals in different types of products which
are retail banking, commercial banking, wealth management, private banking, investment
banking, wholesale banking etc. Main purpose of Barclays Plc in providing financial services to
the customers with purpose of attaining long term goals and objectives.
Main rationale regarding the selection of current topic is to determine strategies undertaken
by the UK banking sector for managing risks associated with liquidity aspects. This is a main
reason regarding the selection of current topic. Along with this, current investigation is important
at personal as well as professional level. At personal level, this research helps me by improving
my research skills such as decision making, literature review, data collection, time management
and many other. These skills helped me in completion of full project within given time period. At
professional level, present study supported me in getting of opportunity within banking sector.
Therefore, current study is important for me at personal and professional level.
1.2 Problem statement
1.3 Conceptual framework
1.4 Purpose of the research
Research aim
Main aim of this research is “To evaluate strategies undertaken by the UK banking sector for
managing risks associated with liquidity aspects”: A study on Barclays Plc
Research objectives
 To identify the strategies used by banking sector of United Kingdom.
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 To investigate the significance of those strategies in management of risk associated with
liquidity aspects.
 To determine the impact of risks associated with liquidity aspects on financial
performance of Barclays Plc.
 To identify the ways for managing negative impact of risks associated with liquidity
aspects in improving financial performance of Barclays Plc.
1.5 Research questions
 What are the strategies used by banking sector of United Kingdom?
 What are the significance of those strategies in management of risk associated with
liquidity aspects?
 What are the impacts of risks associated with liquidity aspects on financial performance
of Barclays Plc.?
 What are the effective ways for managing negative impact of risks associated with
liquidity aspects in improving financial performance of Barclays Plc.?
1.6 Structure of the research
This is an essential part of the dissertation because it facilitates reader in determination of
chapters that will be required for completing current project systematically. There are different
chapters that will be needed for completing current dissertation in systematic manner. These will
be explained as below:
Chapter 1: Introduction: In order to complete this chapter, there are various sub-activities,
which are problem statement, conceptual framework, purpose of research, research questions etc.
These are main activities that were helped in completion of such chapter systematically.
Chapter 2: Literature review: This chapter includes secondary information about the topic.
There are various sources used for collecting secondary information such as books, articles,
websites etc. This section also covers financial crisis, bank performance and CAMELS rating
model.
Chapter 3: Research meth
ods: This is significant chapter because it will help in gathering of accurate information through
specific method. There are different methods that will be included in this chapter such as capital
adequacy,
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