The Application of Liquidity and Credit Risk Management on Honduran Non-Bank Financial Institutions. A Case Study.

Abstract

The aim of this dissertation is to analyze the application of Liquidity and Credit Risk management, as dictated by the Bank for International Settlements (BIS) towards banking institutions, upon non-bank financial institutions in Honduras. An investigation of the history of banking regulations as well as regulations of non-bank financial institutions in Honduras is performed alongside an empirical analysis of the practices recommended by the BIS and their impact upon their application in non-bank financial institutions are presented. The last part of this study encompasses a case study based on the application of risk management practices upon a non-bank financial institution primarily engaged in lending in Honduras.