对外经济贸易大学：《银行管理学 Bank Management》课程教学资源（授课教案课件）Chapter 08 Liquidity Planning and Managing Cash Assets

對酥竹贸易本孝 1951 Chapter 8 Liquidity Planning and Managing Cash Assets

Chapter 8 Chapter 8 Liquidity Planning and Liquidity Planning and Managing Cash Assets Managing Cash Assets

Cash and Liquidity Requirements The amount of cash held is heavily influenced by the bank's liquidity requirements. Vault cash is held to meet reserve requirements and transactions purposes 麓的贫香小手

Cash and Liquidity Cash and Liquidity Requirements Requirements † The amount of cash held is heavily influenced by the bank’s liquidity requirements. † Vault cash is held to meet reserve requirements and transactions purposes

Liquidity and Risks and Returns Liquidity needs arise from net deposit outflows,as balances held with Federal Reserve Banks or correspondent banks decline. Most withdrawals are predictable because they are either contractually based or follow well-defined patterns. 行贺影小号

Liquidity and Risks and Liquidity and Risks and Returns Returns † Liquidity needs arise from net deposit outflows, as balances held with Federal Reserve Banks or correspondent banks decline. † Most withdrawals are predictable because they are either contractually based or follow well-defined patterns

A common definition of liquidity For a financial institution that regularly borrows in the financial markets,liquidity takes on the added dimension of the ability to borrow funds at minimum cost or even the ability to issue stock. It explicitly recognizes that such firms can access cash by selling assets,by new borrowing,and by new stock issues. 的资5土号

A common definition of A common definition of liquidity liquidity † For a financial institution that regularly borrows in the financial markets, liquidity takes on the added dimension of the ability to borrow funds at minimum cost or even the ability to issue stock. † It explicitly recognizes that such firms can access cash by selling assets, by new borrowing, and by new stock issues

Cash versus liquid assets Banks own four types of cash assets: 1.vault cash, 2.demand deposit balances at Federal Reserve Banks, 3.demand deposit balances at private financial institutions,and 4.cash items in the process of collection (CIPC). 猫的资5+号

Cash versus liquid assets Cash versus liquid assets † Banks own four types of cash assets: 1. vault cash, 2. demand deposit balances at Federal Reserve Banks, 3. demand deposit balances at private financial institutions, and 4. cash items in the process of collection (CIPC)

Why do banks hold cash assets? 1.Banks supply coin and currency to meet customers'regular transactions needs. 2.Regulatory agencies mandate legal reserve requirements that can only be met by holding qualifying cash assets. 3.Banks serve as a clearinghouse for the nation's check payment system. 4.Banks use cash balances to purchase services from correspondent banks. 碰制卧价贸易大考

Why do banks hold cash Why do banks hold cash assets? assets? 1. Banks supply coin and currency to meet customers' regular transactions needs. 2. Regulatory agencies mandate legal reserve requirements that can only be met by holding qualifying cash assets. 3. Banks serve as a clearinghouse for the nation's check payment system. 4. Banks use cash balances to purchase services from correspondent banks

Liquid assets A liquid asset is one that can be easily and quickly converted into cash with minimum loss. Contrary to popular notion "cash assets"do not generally satisfy a bank's liquidity needs. 猫的资5+号

Liquid assets Liquid assets † A liquid asset is one that can be easily and quickly converted into cash with minimum loss. † Contrary to popular notion "cash assets" do not generally satisfy a bank's liquidity needs

Liquid Assets 1.Cash and due from banks in excess of requirements, 2.Federal funds sold and reverse repurchase agreements, 3.Short-term Treasury and agency obligations, 4.High quality short-term corporate and municipal securities,and 5.Some government-guaranteed loans that can be readily sold. 麓封强的黄香+孝

Liquid Assets Liquid Assets 1. Cash and due from banks in excess of requirements, 2. Federal funds sold and reverse repurchase agreements, 3. Short-term Treasury and agency obligations, 4. High quality short-term corporate and municipal securities, and 5. Some government-guaranteed loans that can be readily sold

Reserve balances at the Federal Reserve Bank Banks hold deposits at the Federal Reserve in part because the Federal Reserve imposes legal reserve requirements and deposit balances qualify as legal reserves. Banks also hold deposits to help process deposit inflows and outflows caused by check clearings,maturing time deposits and securities,wire transfers,and other transactions. 猫的资6+孝

Reserve balances at the Reserve balances at the Federal Reserve Bank Federal Reserve Bank † Banks hold deposits at the Federal Reserve in part because the Federal Reserve imposes legal reserve requirements and deposit balances qualify as legal reserves. † Banks also hold deposits to help process deposit inflows and outflows caused by check clearings, maturing time deposits and securities, wire transfers, and other transactions

Required reserves and monetary policy The purpose of required reserves is to enable the federal reserve to control the nation's money supply. There are basically three distinct monetary policy tools: 1.open market operations, 2.changes in the discount rate,and 3.changes in the required reserve ratio. 麓的贫香小手

Required reserves and Required reserves and monetary policy monetary policy † The purpose of required reserves is to enable the Federal Reserve to control the nation’s money supply. † There are basically three distinct monetary policy tools: 1. open market operations, 2. changes in the discount rate, and 3. changes in the required reserve ratio