A Truly Liquid Asset

CFA Magazine ◽  
2011 ◽  
Vol 22 (3) ◽  
pp. 45-47
Author(s):  
Ed McCarthy
Keyword(s):  
Liquid Asset

scholarly journals Banks Belonging to the Erste Group and their Sensitivity to the Confidence Crisis on the Interbank Market

2015 ◽  
Vol 63 (6) ◽  
pp. 1953-1960
Author(s):  
Pavla Klepková Vodová
Keyword(s):  
Scenario Analysis ◽  
Commercial Banks ◽  
Interbank Market ◽  
Average Sensitivity ◽  
Liquid Asset ◽  
Banks And Banking

The aim of this paper is to measure the sensitivity of commercial banks from the Erste Group to the confidence crisis on the interbank market and to compare their sensitivity with average sensitivity of banks in particular countries. We have used the methodology of scenario analysis for the liquid asset ratio. All banks belonging to the Erste Group should be able to withstand the confidence crisis on the interbank market. The group of the most vulnerable banks consists from Erste bank Hungary and Banca Comerciala Romana from Romania. In some cases, banks from the Erste Group are more sensitive; while in other cases are banks belonging to the Erste Group less vulnerable than corresponding banking sectors. Except of banks from Hungary, Romania and Slovakia, subsidiary banks are less sensitive to the confidence crisis than the parent bank. Banks (and banking sectors) who are net borrowers on the interbank market are much more sensitive to the confidence crisis on this market.

scholarly journals Penerapan Manajemen Kas Dalam Kaitannya Dengan Pengendalian Kas, Hutang Dan Piutang Dengan Memanfaatkan Laporan Arus Kas (Studi Kasus Pada PDAM Tirta Pakuan Kota Bogor)

2018 ◽  
Vol 2 (3) ◽  
pp. 216-222
Author(s):  
Asteria Caterinah Budiman ◽  
Bambang Pamungkas
Keyword(s):  
Cash Flow ◽  
Cash Management ◽  
Liquid Asset ◽  
In The Beginning

Cash is a firm’s most liquid asset and has a decisive position in keeping the smooth operations of the company. The larger the cash, the more liquid the company be. But larger cash means also low cash turnover. Thus, a cash management is necessary to effectively and efficiently manage the firm’s liquid asset. This research is aimed at investigating how PDAM Tirta Pakuan implement its cash management and relate it with the control of cash-in-flow and cash-out-flow by utilizing the firm’s the cash flow. The result shows that PDAM TPKB implements its cash management and cash budget in the beginning of period based on previous year’s report. The predicted budget for cash outflow when compared with its realization in 2009 tend to be unfavorable for the firm, however the deviation is contradictive in 2010.

scholarly journals Liquidity Choice and Misallocation of Credit

2019 ◽  
Vol 2019 (284) ◽  
Author(s):  
Ehsan Ebrahimy
Keyword(s):  
Interest Rate ◽  
Type I ◽  
Pareto Improvement ◽  
Government Bonds ◽  
High Interest Rate ◽  
Liquid Asset ◽  
Constrained Efficiency ◽  
Liquid Type ◽  
The Interest Rate

This paper studies a novel type of misallocation of credit between investments of varying liquidity. One type of investment is more liquid, i.e., its return is more pledgeable, and the other is more productive. Low liquidities of both investment types imply that the allocation of credit is constrained inefficient and that there is overinvestment in the liquid type. Constrained inefficient equilibria feature non-positive, i.e., one less than or equal the economy’s growth rate, and yet too high interest rate, too much investment and too little consumption. Financial development can reduce long-term welfare and output in a constrained inefficient equilibrium if it raises the liquidity of the liquid type. I show a maximum liquid asset ratio or a simple debt tax can achieve constrained efficiency. Introducing government bonds can make Pareto improvement whenever it does not raise the interest rate.

Financial health of Syariah and non-Syariah banks: a comparative analysis

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Elok Heniwati ◽  
Nella Yantiana ◽  
Gita Desyana
Keyword(s):  
Comparative Analysis ◽  
Financial Stability ◽  
Influential Factors ◽  
Financial Health ◽  
Short Term ◽  
Liquid Asset ◽  
Content Type ◽  
Explanatory Variables ◽  
Insolvency Risk

Purpose This paper aims to investigate whether Syariah banks are more financially stable than non-Syariah banks and check the differential impact of explanatory variables in financial health and efficiency in the context of Indonesia. Design/methodology/approach By using unbalanced panel data from Bankfocus over the period 2011–2018, regression analysis is performed with two response variables representing financial health, ZSCORE for return on average assets, liquid asset to deposit and short-term funding ratio. A number of control variables are used as tools to confirm the hypotheses. To check the robustness of the findings, a model with different specifications has been used. Findings The results indicate that while Syariah banks present higher insolvency risk (less health) for long-term activity, the opposite is true for short-term activity. Other findings show that Syariah and non-Syariah banks contribute differently to the national system of financial stability owing to varying influential factors on the bank’s health. Originality/value This paper presents a comparative analysis between the financial stability of Syariah banks and that of non-Syariah banks in Indonesia by building an empirical framework that allows the author to examine the differential effects of each underlying feature on financial stability in Syariah and non-Syariah banks.

scholarly journals Financial Stability Index for the Financial Sector of Pakistan

Economies ◽  
2019 ◽  
Vol 7 (3) ◽  
pp. 81
Author(s):  
Sadia Babar ◽  
Rashid Latief ◽  
Sumaira Ashraf ◽  
Sania Nawaz
Keyword(s):  
Financial Stability ◽  
Stability Index ◽  
Financial Sector ◽  
Decision Makers ◽  
Return On Assets ◽  
Financial Reports ◽  
Liquid Asset ◽  
Return On Equity ◽  
Linear Probability

This study aims to develop a financial stability index for the Pakistani financial sector by using the financial reports for the period of 2001–2011. Specifically, we constructed three different classes of indices in this study based on a variance-equal weighted approach, a linear probability approach, and a logistic approach. We also assessed the prediction accuracy of the financial stability index. All indices indicated that profitability, liquid liability to the liquid asset, non-performing loan, uncovered liabilities, interest spread and inter-fund to liquid liabilities variables contribute significantly to the determination of financial stress of commercial banks. We also compared the results of indices computed with different methodologies—among them was the index constructed by employing coefficients of the logistic model and which performed outstandingly in predicting distressed and non-distressed banks. Moreover, the findings of this study suggest that in regard to return on assets and return on equity, when employed in a stepwise manner for developing the financial stability index, the results are similar in the sense that both profitability indicators have the same behavior. Finally, we conclude that the financial stability indices developed in this study could help decision makers to detect and avoid instability in the future.

TO SELL OR NOT TO SELL: THAT IS THE QUESTION THE IRONY OF THE TRUSTS OF LAND AND APPOINTMENT OF TRUSTEES ACT 1996

2011 ◽  
Vol 70 (3) ◽  
pp. 579-606 ◽  
Author(s):  
Martin Dixon
Keyword(s):  
Liquid Asset ◽  
Narrow View ◽  
The Family ◽  
Original Scheme ◽  
Family Home ◽  
The Law ◽  
Land Holdings ◽  
Trust Corporation ◽  
Trust Of Land ◽  
Capital Value

The 1925 property statutes, particularly the Settled Land Act 1925 and the original sections 30 to 36 Law of Property Act 1925, were premised on a fairly narrow view of the prevalence and purpose of co-owned land. Successive interests either fell within the awkward provisions of the Settled Land Act 1925 or were organised under a trust for sale within the ambit of the Law of Property Act 1925. Concurrent co-ownership could exist, also under a trust for sale, but the Law of Property Act 1925 was premised on the assumption that such trusts would be expressly created, with readily identifiable beneficiaries, holding in defined shares, often for investment purposes and primarily in respect of larger land holdings. That is why the original scheme was a trust for sale, why sections 34 and 36 Law of Property Act 1925 appear not to contemplate the implied trust of land at all,1 why interests behind trusts originally were not regarded as proprietary,2 why statutory overreaching is so powerful and why sections 2 and 27 Law of Property Act 1925 stipulate a requirement of at least two trustees or a trust corporation before overreaching can occur.3 Concurrent co-ownership was, essentially, a financial not a residential matter, and the ready conversion of land to liquid asset was regular and expected. The position today is virtually the reverse, with concurrent co-ownership being the normal way by which the family home4 is owned and with the expectation that it will be retained as that home. Realisation of its capital value is intended to be postponed until the family's needs have changed.

Childhood Financial Socialization and Debt-Related Financial Well-Being Indicators in Adulthood

2019 ◽  
Vol 30 (2) ◽  
pp. 213-230
Author(s):  
David Allen Ammerman ◽  
Cherie Stueve
Keyword(s):  
Positive Association ◽  
Household Survey ◽  
Well Being ◽  
Financial Knowledge ◽  
Financial Socialization ◽  
Potential Influence ◽  
Short Term ◽  
Current Ratio ◽  
Liquid Asset ◽  
A Current

The purpose of this study was to explore the potential influence of childhood financial socialization on financial well-being in adulthood. Using a sample (N = 2,213) from De Nederlandsche Bank Household Survey (DHS) we modeled the likelihood of household debt/asset ratio less than or equal to 40%, and the likelihood of a household reporting a current ratio (liquid asset /short-term debt ratio) greater than or equal to 100%. Consistent with predictions of social learning theory, being encouraged to save during childhood had a positive association with meeting the financial planning industry benchmarks for these financial ratios in adulthood. The key implication is that the path to financial well-being does not begin with financial knowledge attained in adulthood, but instead begins with experiential learning and socialization during childhood.

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