This white paper draws on the convergence of both external and internal drivers behind strengthening liquidity and funding regimes within financial institutions. While noting the irony of timing (vis a vis the economic cycle), it welcomes the increased scrutiny given the genesis of the ‘credit crunch’ in poor cash management (1).
However it observes that the recent UK Financial Services Authority Consultation Papers on Liquidity and Funding (2) do not address the critical issue of how funds are managed internally. It argues that in fact banks can gain competitive advantage if their ‘internal funding frameworks’ are operated effectively.