--%>

What is Liability Management

Liability Management: The procedure by which financial institutions balance outstanding liabilities, like deposits, CDs, and so on, with suitable liquidity reserves. Banks and other lenders employ liability management to decrease liquidity risks and unfavorable market condition impacts.

Use and management of liabilities, like customer deposits, by a bank in order to ease lending and permit for balanced growth. Management of money allowed from depositors and also funds secured from other institutions comprise liability management. It too includes hedging against changes in interest rates and controlling the gap among the maturities of liabilities and assets.

   Related Questions in Financial Accounting

  • Q : International and financial management

    Explain, how international financial management is different from the domestic financial management?

  • Q : Conglomerate expansion Evaluate the

    Evaluate the given statement: “Firm may decrease its currency exposure by diversifying across the different business lines”.

  • Q : International diversification Evaluate

    Evaluate the home country’s multinational corporations as a tool for the international diversification.

  • Q : Explain Cost of goods Explain Cost of

    Explain Cost of goods and how they are used in estimating gross profit and net profit of the business?

  • Q : Accountant & Financial In Business

    Questions 1. Identify the services or programs to be included in the cost and profitability analysis. 2. Examine the costs listed in Table 2. a. Identify the direct costs associated with each service or program. b. Which costs would be organization

  • Q : Describe JOC in accounting Describe JOC

    Describe JOC in accounting?

  • Q : Need for valuing goodwill Need for

    Need for valuing goodwill: If the mutual rights of the partners modifies then the party which makes a sacrifice should be compensated. This basis of compensation is goodwill therefore we require calculating goodwill. Mutual rights change beneath follo

  • Q : Prepare adjusting journal entries The

    The following information for the month of December 20x6, with respect to cash activities, was gathered by Tressa Ltd.’s bookkeeper. Cash balance per books, December 1 $ 3,700

    Q : Cash flows in APV model State the

    State the intuition of discounting several cash flows in APV model at particular discount rates?

  • Q : Recommended action for GM to manage its

    General Motors exports the cars to Spain however the strong dollar against the peseta, hurts the sales of GM cars in the Spain. In Spanish market, GM faces the competition from the French and Italian car makers, like Renault and Fiat, whose currencies stays stable wit