This is about storing liquidity in the form of liquid assets ( e.g. T-Blls, fed fund loans, CD's etc) and then selling them when the liquidity is needed
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Borrowed Liquidity/ Liability Management Strategy
This consists of purchasing or borrowing from the money market to cover for all of its liquidity needs
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Balanced Liquidity Strategy
It combines the use of liquid asset holding( Asset Management) and borrowed liquidity ( Liability Management) to meet liquidity needs
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Compete for retail core deposits
Once the bank attracts deposit businesses, many will maintain these balances as long as the bank provides good service
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'Value at Risk'
We are X percent certain that we will not lose more than V dollars in Time T
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'Expected Shortfall'
The expected loss during time T conditional on the loss being greater than the Xth percentile of the loss distribution. This is also known as conditional VAR, Conditional tail expectation or expected tail loss
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Other cards in this set
Card 2
Front
This consists of purchasing or borrowing from the money market to cover for all of its liquidity needs
Back
Borrowed Liquidity/ Liability Management Strategy
Card 3
Front
It combines the use of liquid asset holding( Asset Management) and borrowed liquidity ( Liability Management) to meet liquidity needs
Back
Card 4
Front
Once the bank attracts deposit businesses, many will maintain these balances as long as the bank provides good service
Back
Card 5
Front
We are X percent certain that we will not lose more than V dollars in Time T
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