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1 Replies Last post: Mar 30, 2008 1:40 PM by LUCKIEST

Any tips on tools and techniques to manage liquidity?

Mar 30, 2008 10:11 AM

jimmymac 8 posts since
Dec 28, 2007

*+We're curious to learn how small businesses are managing liquidity challenges
and how they are dealing with the all the changes and unc
Continued success,

Sum2, LLC
assessing risk |realizing opportunities

*+www.sum2.com+</</em>

Tags: alternate_financing_options, cash_flow, business_credit Report as inappropriate

LUCKIEST 7,912 posts since
Aug 6, 2007

1. Re: Any tips on tools and techniques to manage liquidity? Mar 30, 2008 1:40 PM

Tools and techniques to manage liquidity

Liquidity risk in banking has been attributed to transactions deposits
and their potential to spark runs or panics. Transactions deposits help banks hedge liquidity risk from unused loan
commitments.
Bank stock-return volatility increases with unused
commitments, but the increase is smaller for banks
with high levels of
transactions deposits.
This deposit-lending risk management synergy
becomes more powerful during periods of tight liquidity,
when nervous
investors move funds into their banks.

Managing cash flow, interest
rates and relations with the bank are fundamentally issues for every
business.

LUCKIEST

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ForumsFinancing Tips

This Question is Possibly Answered

Any tips on tools and techniques to manage liquidity?

Mar 30, 2008 10:11 AM

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