Net funding requirements in liquidity management are determined by means of:
A) adding up expected vault cash outflows, ATMs and other cash points operated by the institution across all branches
B) establishing a forward cash flow plan that takes account of all contractual and behavioral cash flows related to assets and liabilities
C) the net cash flow from investment activities in the IFRS consolidated Statement of Cash Flows for prior periods
D) subtracting short-term liabilities from short-term assets

Question

Quizplus · Accepted Answer

Net funding requirements in liquidity management are determined by establishing a forward cash flow plan that takes account of all contractual and behavioral cash flows related to assets and liabilities. This takes into consideration the expected inflows and outflows of cash over future periods and helps determine the net amount of funding required to meet these obligations. The other choices offer incomplete or irrelevant methods of determining net funding requirements.

Net Funding Requirements in Liquidity Management Are Determined by Means