Liquidity and Monetary financial institution: Difference between pages

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1.  
Monetary Financial Institutions (MFIs) are [[central bank]]s and other institutions whose business is to take deposits and/or close substitutes for deposits from entities other than MFIs and, for their own account (at least in economic terms), to grant credits and/or make investments in securities.


An asset's ability to be turned into cash quickly and without significant loss compared with current market value.


In many contexts, MFIs ''excluding'' central banks are considered.


2.  
So, for example, the Bank of England publishes statistics under the heading "Monetary financial institutions (excluding central bank) balance sheet".  


An entity’s ability to pay its obligations when they fall due, especially in the short term.
But conversationally and informally they are taken as relating to "MFIs".
 
 
3.
 
An entity's ability to source additional funds to meet its obligations, including in the medium and longer term.
 
 
4.
 
A financial measure designed to quantify an entity's ability to meet its obligations when they fall due.
* For non-financial organisations, simple measures of liquidity include the ''current ratio'' and the ''quick ratio''.
* For banks and other financial institutions, liquidity measures include those which identify how long the bank could survive if wholesale funds were to dry up and retail funding was heavily stressed. This period is known as the ''survival period''.
 
 
== See also ==
* [[Authorisation]]
* [[Authority limits]]
* [[Cash and cash equivalents]]
* [[Cash forecasting]]
* [[Cash pool]]
* [[CertICM]]
* [[CRD IV]]
* [[Current ratio]]
* [[Deep market]]
* [[Funding]]
* [[Funds]]
* [[Headroom target]]
* [[Illiquid]]
* [[Leverage]]
* [[Liquid]]
* [[Liquidate]]
* [[Liquidation]]
* [[Liquidity buffer]]
* [[Liquidity Coverage Ratio]]
* [[Liquidity preference]]
* [[Liquidity management]]
* [[Liquidity premium]]
* [[Liquidity risk]]
* [[Money management]]
* [[Net Stable Funding Ratio]]
* [[Quick ratio]]
* [[Run]]
* [[Security]]
* [[Solvency]]
* [[Stress]]
* [[Supply chain finance]]
* [[Survival period]]
* [[Yield]]
 
 
=== Other resources ===
*[[Media:2015_06_June_-_Safety_first.pdf| Safety first, The Treasurer, 2015]]
 
[[Category:Liquidity_management]]

Revision as of 13:49, 4 August 2014

Monetary Financial Institutions (MFIs) are central banks and other institutions whose business is to take deposits and/or close substitutes for deposits from entities other than MFIs and, for their own account (at least in economic terms), to grant credits and/or make investments in securities.


In many contexts, MFIs excluding central banks are considered.

So, for example, the Bank of England publishes statistics under the heading "Monetary financial institutions (excluding central bank) balance sheet".

But conversationally and informally they are taken as relating to "MFIs".