Modelling commercial banks liquidity management using stochastic programming

Caston Sigauke, Daniel Maposa, Wilbert Chagwiza

    Research output: Contribution to journalArticleResearchpeer-review


    In this paper a stochastic programming framework for liquidity management of commercial banks in Zimbabwe is developed. The paper sets out to explain an important financial planning model for liquidity management; in particular it discusses why in practice optimum planning models are used. The ability to build an integrated approach which combines treasury security assets models with that of income generating decisions have proved desirable and more efficient in that it can lead to better liquidity decisions. The role of uncertainty and quantification of risk in these planning models is considered.
    Original languageEnglish
    Pages (from-to)49 - 64
    Number of pages16
    JournalInternational Journal of Business and Management
    Issue number9
    Publication statusPublished - 2012

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