You’re a banker, liquidity management is your daily routine. It’s tricky, but when you nail it, it’s pure poetry.

You’re a banker, liquidity management is your daily routine. It’s tricky, but when you nail it, it’s pure poetry.

Let’s talk do’s and don’ts.

Do:

1. Stress Test: Bad times don’t send a warning, but you can be better prepared. Regular stress testing helps.

2. Diversify: You know the saying, don’t put all your eggs in one basket? Same goes for your funding sources.

3. Monitor: Keep a close eagle eye on market trends and indicators. Stay one step ahead.

Don’t:

1. Overlook Internal Communication: Make sure all stakeholders are in the loop on liquidity risk scenarios and plans.

2. Underestimate Contingency Planning: A solid plan ‘B’ is essential. Build resilience into your liquidity strategy.

3. Get Complacent: A good liquidity position now doesn’t guarantee a rosy future. Always stay on your toes.

Strike the right balance, and you’ll keep that liquidity dance smooth and steady.

What did I miss? What’s your biggest do or don’t for managing liquidity?

🔔 Follow Brian on Linkedin: Brian Pillmore

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