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Sep 14, 2019 · G35. G39. 1. Introduction. Liquidity is an important factor in determining short-term financial management policies and it is more of a tactical concept related to the small and medium-sized enterprises (S.M.E.)’s ability to pay for its current obligations when they fall due at minimal cost.
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Aug 20, 2022 · working capital, liquidity, profitability, current assets, current liabilities. 1. Introduction. Liquidity plays a crucial role in the cogent evolving of a firm. Liquidity management has, thus ...
Dec 29, 2023 · Business practices need to consider industry-specific factors to understand how they can influence the relationship between liquidity and profitability. From a research point of view, this review ...
- A chance to reappraise strategy,
- primarily liquidity-focused actions with business strategies and operational structures – especially
- – Giuseppe Niolu
- Business Models
- Modeling and monitoring
- Banks have become better at predicting market risk
- liquidity regulations
- IT framework
- Conclusion
- Principal, Advisory KPMG in the US T: +1 212 954 8625 E: cjdias@kpmg.com
Two points stand out from this analysis. First, mere compliance is scarcely an option. The costs and challenges of compliance with the forthcoming liquidity requirements are already so great that banks should see the new rules as an opportunity, rather than a game-changing threat. A chance to reappraise strategy, funding and profits can create a bu...
since these strategies and structures must change in response to the changing
but the total sum of available deposits tends to grow slowly, and other banks will be chasing after the same depositors, thereby pushing up the interest rates paid them. In short, funding costs are likely to go up and the yield on high-quality liquid assets to go down. Every reputable bank is preparing in its own way to deal with the coming regulat...
Since global economic trends and compliance with the liquidity requirements will shrink profits, banks will have to innovate to improve both eficiency and revenue. This will require a fundamental reassessment of their business models, burdened as they are by siloed operations, not to mention a complex organization that has multiple business lines a...
One of the paradoxes of the modern bank is that the Risk function is still not fully integrated into strategic planning, despite the failure of risk models to predict the financial crash of 2008. Banks have become better at predicting market risk and credit risk, but the modeling of liquidity risk is less sophisticated. Bank leaders need to put the...
and credit risk, but the modeling of liquidity risk is less sophisticated. Bank leaders need to put their best minds to work on devising new liquidity-risk models, an extremely dificult task given the speed with which the financial markets change and the fact that the final
aren’t known yet. forward-looking assessments of their liquidity ratios. These calculations will be based on a range of possible scenarios and behavioral assumptions, such as various estimates of deposit-withdrawal rates in the event of a market-wide financial shock. These systems should also assess the ability of the bank to maintain its LCR and N...
A transformation of this magnitude will lead to a tremendous increase in the demand for data, from marketing forecasts to liquidity scenarios. And the complexity of managing the data will rise exponentially due to the fact that banks’ value chains are so fragmented. Apart from compliance, banks will want to use the data to gain a deeper, richer vie...
At this crucial juncture, as the world awaits the final rules for Basel III and from various national authorities, banks must not delay in preparing for change. The bolder and more carefully prepared institutions are likely to be the ones to take advantage of the new regulations. “Rigorous self-analysis, accommodating change and embracing transform...
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Jan 9, 2021 · The purpose of this study is to identify the key aspects that have been studied in the area of stock market liquidity, accumulate their important findings, and also provide a quantitative categorization of reviewed literature that will facilitate in conducting further research. The study analyzes relevant research papers published after the ...
- Priyanka Naik, Y. V. Reddy
- 2021
Jun 28, 2016 · Abstract— Liquidity management and profitability are very important issues in the growth and survival of business and the ability to handle the trade-off between the two a source of concern for ...
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Companies need to implement long-term target operating models and liquidity management strategies to survive in an increasingly and persistently volatile environment. Thereby, access to and control over cash has proven to be a critical factor, providing alternatives to more restrictive external borrowing as well as means to finance M&A projects ...
