Capital adequacy ratio (CAR): Measure the asset-liability ratio of a bank to assess whether the bank has enough capital to bear losses and resist risks.
Balance sheet: Monitor and analyze the assets and liabilities of the bank to determine the liquidity and risk level of the bank.
Cash flow monitoring: monitoring the cash liquidity and cash flow of banks to determine whether banks can meet the cash flow demand and avoid liquidity crisis.
Emergency liquidity assistance (ELA): When a bank faces a liquidity crisis, the regulator can provide emergency liquidity assistance to reduce the liquidity risk of the bank.
Market liquidity index: evaluate the liquidity situation in the market, including market volatility, transaction volume and transaction price, so as to judge the market liquidity risk faced by banks.
Emergency Liquidity Plan (ELP): Formulate specific contingency plans to deal with liquidity risks, including measures such as adjusting asset portfolio, increasing liabilities and using emergency liquidity assistance.
To sum up, these liquidity risk monitoring indicators are designed to help banks and regulators better monitor and manage the liquidity risk of banks, thereby reducing the risks and adverse effects faced by banks.