Cimb Bank And Affin Bank Case Study

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Both bank CIMB Bank and Affin Bank has shown the same interest in creating a flexible banking system that is able to measure and forecast the cash flows of the derivative assets and liabilities in a variety of normal and stress conditions. Results showed that the measurement of liquidity is included in the assessment of the bank's cash inflows and outflows of liquidity on asset valuations to identify the potential for lack of funds. In finance, liquidity management takes one of two forms based on the definition of liquidity and the type of liquidity refers to the ability to trade assets, such as stocks or bonds at current prices. Large organizations such as financial institutions, banks often assessed the ability to meet cash obligations and…show more content…
A close working relationship with the tax and accounting staff is important because of its global cash management is highly oriented tax and accounting. In addition, cash flow management needs to be coordination between the treasury and operations such as in volatile market today, it requires electronic devices that power to collect a variety of financial information and to format reports that are useful for decision-making. Robust liquidity management is able to prevent the bank from experiencing a shortage in demand deposits. Today, high quality service has replaced the standard low price when the company bought the banks to support their cash management business. Both banks offer automatic processes such as payroll and accounts payable together with electronic data interchange (EDI), making outsourcing affordable and secure from…show more content…
Due to the information systems that link banks and companies are so complex, once the choice is made, switch bank can be expensive. Companies that over-exploited must take steps to reduce the gap between cash on hand and their debt obligations. All companies and government debt obligations that have liquidity, but liquidity risk of the two banks has been investigated. Investors are still using liquidity ratios to assess the value of the shares or bonds of the company, but they are also concerned about a wide range of liquidity management. People who trade assets in the stock market can not just buy or sell any property at any time since the buyer needs the seller and the seller to the buyer. If the buyer is unable to find a seller at current prices, he usually needs to increase his efforts to attract someone to part with assets. If the opposite is true for sellers who must reduce their asking prices to attract buyers. Investors and traders manage liquidity risk by not leaving too much of their portfolio in illiquid

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