Funding and Liquidity: Difference between pages

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1.  


Medium to longer term borrowing by a non-financial undertaking to meet its operational needs.
An asset's ability to be turned into cash quickly and without significant loss compared with current market value.




<span style="color:#4B0082">'''''Fund early'''''</span>
2.


:"... the ease with which treasurers have secured debt funding may start to lessen.
An entity’s ability to pay its obligations when they fall due, especially in the short term.


:As panellists pointed out, the situation calls to mind the ACT's mantra: fund early, fund often and fund long."


:''The Treasurer magazine, December 2018 / January 2019, p13''
3.


An entity's ability to source additional funds to meet its obligations, including in the medium and longer term.




2.
4.  


More generally, the provision or the sources of finance necessary for the continuing operation of an undertaking.  
A financial measure designed to quantify an entity's ability to meet its obligations when they fall due.  
 
In this context, sources of finance for non-financial organisations would include, bank lenders, bondholders and shareholders.
* 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''.
 
3.
 
More broadly, sources of finance including certain other creditors, as well as bank lenders, bondholders and shareholders.
 
 
4. ''Pensions.''
 
The provision in advance for future liabilities in a defined benefit pension scheme by the accumulation of assets.
 
 
5. ''Banking.''
 
In the banking context, sources of funding include retail customer deposits and equity, as well as wholesale and longer term borrowings.
 
Banks' funding - very broadly - can be categorised as 'own funds' or 'borrowed funds'.




== See also ==
== See also ==
* [[Accrued benefits funding method]]
* [[Authorisation]]
* [[Available Stable Funding]]
* [[Authority limits]]
* [[Borrowed funds]]
* [[Cash and cash equivalents]]
* [[Capital]]
* [[Cash forecasting]]
* [[Defined benefit pension scheme]]
* [[Cash pool]]
* [[ESG funding]]
* [[Current ratio]]
* [[FFL]]
* [[Deep market]]
* [[Flighty]]
* [[Funding]]
* [[Funding concentration risk]]
* [[Headroom target]]
* [[Funding level]]
* [[Illiquid]]
* [[Funding liquidity risk]]
* [[Liquidate]]
* [[Funding management]]
* [[Liquidation]]
* [[Funding method]]
* [[Liquidity buffer]]
* [[Funding ratio]]
* [[Liquidity Coverage Ratio]]
* [[Funding risk]]
* [[Liquidity preference]]
* [[Funding stack]]
* [[Liquidity management]]
* [[Funds]]
* [[Liquidity premium]]
* [[Liquidity]]
* [[Liquidity risk]]
* [[Loan to stable funding ratio]]
* [[Money management]]
* [[Net Stable Funding Ratio]]
* [[Net Stable Funding Ratio]]
* [[Prospective benefits funding method]]
* [[Quick ratio]]
* [[Own funds]]
* [[Run]]
* [[Required Stable Funding]]
* [[Security]]
* [[Scheme Specific Funding]]
* [[Solvency]]
* [[Stability]]
* [[Stress]]
* [[Statement of funding principles]]
* [[Supply chain finance]]
* [[Statutory funding objective]]
* [[Survival period]]
* [[Sticky]]
* [[CertICM]]
* [[Term out]]
* [[Yield]]




==External link==
=== Other resources ===
[http://www.afponline.org/publications-data-tools/reports/guides/global-liquidity-guides/Detail/short-term-borrowing Association for Finance Professionals (AFP) Guide to Global Short Term Borrowing]
*[[Media:2015_06_June_-_Safety_first.pdf| Safety first, The Treasurer, 2015]]


[[Category:Corporate_finance]]
[[Category:Liquidity_management]]
[[Category:Long_term_funding]]

Revision as of 11:53, 17 November 2016

1.

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


2.

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


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


Other resources