Liquidity and Net credit/debit position: Difference between pages

From ACT Wiki
(Difference between pages)
Jump to navigationJump to search
imported>Doug Williamson
(Add link.)
 
imported>Doug Williamson
(Added missing 'a')
 
Line 1: Line 1:
1.  
''Netting systems''.  


An asset's ability to be turned into cash quickly and without significant loss compared with current market value.
A participant’s net credit or net debit position in a netting system is the sum of the value of all the transfers the participant has received up to a particular point in time, minus the value of all the transfers the participant has sent.


If the difference is positive, the participant is in a net credit position. 


2.  
If the difference is negative, then the participant is in a net debit position.  


An entity’s ability to pay its obligations when they fall due, especially in the short term.


The net credit or net debit position at settlement time is defined as the net settlement position. 


3.
These net positions may be calculated on a bilateral or multilateral basis.
 
An entity's ability to source additional funds to meet its obligations, including in the medium and longer term.
 
 
4.
 
A financial ratio designed to measure an entity's ability to meet its obligations when they fall due.
For example, the ''current ratio'' or the ''quick ratio''.




== See also ==
== See also ==
* [[Authorisation]]
* [[Credit]]
* [[Authority limits]]
* [[Debit]]
* [[Cash and cash equivalents]]
* [[Netting]]
* [[Cash forecasting]]
* [[Cash pool]]
* [[Current ratio]]
* [[Deep market]]
* [[Headroom target]]
* [[Illiquid]]
* [[Liquidation]]
* [[Liquidity preference]]
* [[Liquidity management]]
* [[Liquidity premium]]
* [[Liquidity risk]]
* [[Money management]]
* [[Quick ratio]]
* [[Run]]
* [[Security]]
* [[Solvency]]
* [[Supply chain finance]]
* [[CertICM]]
* [[Yield]]
 
 
=== Other resources ===
*[[Media:2015_06_June_-_Safety_first.pdf| Safety first, The Treasurer, 2015]]
 
[[Category:Liquidity_management]]

Revision as of 08:24, 11 April 2015

Netting systems.

A participant’s net credit or net debit position in a netting system is the sum of the value of all the transfers the participant has received up to a particular point in time, minus the value of all the transfers the participant has sent.

If the difference is positive, the participant is in a net credit position.

If the difference is negative, then the participant is in a net debit position.


The net credit or net debit position at settlement time is defined as the net settlement position.

These net positions may be calculated on a bilateral or multilateral basis.


See also