Post a new topic
    1 Reply Latest reply on Mar 30, 2008 1:40 PM by LUCKIEST

    Any tips on tools and techniques to manage liquidity?

    jimmymac Newbie

      *+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>
        • Re: Any tips on tools and techniques to manage liquidity?
          LUCKIEST Guide
          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