Collectively, banks, payment schema and capital market infrastructure need to ensure the financial system has access to sufficient liquidity to function; each organisation also has to retain enough liquidity to meet its regulatory obligations.
As settlement times get shorter, this task of managing liquidity just keeps getting harder; without technology, it would be impossible. Technology enables organisations to forecast, monitor and manage their liquidity positions in real-time, and ensure they use their liquidity as efficiently as possible.
Find out in Montran’s guide, “Liquidity: the Oil in the Machine of Finance”:
- How banks manage their own liquidity positions;
- Why banks need to incentivise companies and others to hold cash with them; and
- Why payment and securities settlement systems have to manage liquidity to minimise their demands of banks.
The report highlights the value of liquidity to all organisations within the interdependent financial system and outlines the competing demands on liquidity. It explains why different organisations are reviewing their use of technology, not just to improve their control over liquidity but also to take advantage of other market changes, such as ISO migration.