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Resources for Accountants

The Liquidity Gap | Asset Liability Management [Video]

The Liquidity Gap | Asset Liability Management

Changes in interest rates can affect the bank’s profit and equity value when assets and liabilities are not properly matched, but this probably won’t cause the bank to become insolvent. Improperly matching the maturities of cash flows (the cash flow gap discussed earlier) could drive the bank to insolvency, but this risk can be managed with planning. A risk that is more difficult to plan for is a liquidity crisis.

What if one or more of the bank’s funding sources were to suddenly become unavailable?

Before the financial crisis, liquidity risk was treated as part of cash management.

But during the financial crisis, banks learned that liquidity problems could be catastrophic. Banks had not experienced problems with liquidity for years, as they could easily raise capital from securitization and through short-term lending in the repo market. But when those sources of funding dried up, some banks were ruined.

Now banks have dedicated staff that analyze hypothetical scenarios to assess the bank’s liquidity gap. These staff monitor early warning indicators that could predict a liquidity event, such as credit rating downgrades, increases in default rates, difficulty issuing debt, etc. They also develop a contingency funding plan with steps for obtaining replacement funding should a liquidity event occur.

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Categories
Resources for Accountants

5 Personal Finance Books That Will Change YOUR Life [Video]

In this video, we discuss the Top 5 Personal Finance Books that you will change YOUR Life. Here are the top 5 Personal Finance Books#1 - Rich dad poor dad - Get this book from https://bit.ly/3IdH1vGThis book covers the following topics- Financial IQ- Basics of Investment. - Difference between working for money and money working for us.- Techniques to invest in real estate. - Starting and owning your own business.- The major difference between assets and liabilities.#2 - The Automatic MillionaireGet this book from https://bit.ly/36AKQ0lThis book covers the following topics- Latte factor- Importance of saving every day - How to pay yourself first- Disciplined investment- Automated payments- Willpower#3 - I will Teach You to be Rich by Ramit SethiGet this book from https://bit.ly/3LTg17aThis book covers the following topics- Step-by-step guide to improve your finances - Six weeks time frame to gain control over money- Retirement funds- Tips to increase your wealth- Cultivate good financial habits#4 - Debt-free by 30Get this book from https://bit.ly/3H7iG9BThis book covers the following topics- How to handle Bank fees- Tips to manage credit card debt- Insurance issues - Tips for maintaining a strict budget- Complete control over your finances#5 - Get a Financial LifeGet this book from https://bit.ly/3s7scoUThis book covers the following topics- Face challenges and take risks- Calculated and practical decisions- Latest tax rules- How to find smart investments - Tips to protect yourself from identity theft #personalfinancebooks #toppersonalfinancebooks #wallstreetmojoFor more books on this topic refer to our article at: https://www.wallstreetmojo.com/best-personal-finance-books/Follow us at:Youtube ➤ https://www.youtube.com/channel/UChlNXSK2tC9SJ2Fhhb2kOUwLinkedin ➤ https://www.linkedin.com/company/wallstreetmojo/Facebook➤ https://www.facebook.com/wallstreetmojoInstagram➤https://www.instagram.com/wallstreetmojoofficial/

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Resources for Accountants

Negotiation skills: Creative Problem Solving in Negotiation [Video]

Negotiation is a complex and often challenging process that requires you to find solutions that satisfy both parties involved. While traditional negotiation tactics focus on reaching compromises, creative problem solving takes negotiation to the next level by exploring innovative solutions that can lead to win-win outcomes. In this guide, you will learn how to harness your creative problem-solving skills to become a more effective negotiator.Get free business and management guides, tools, and worksheets at: https://www.bizmove.com

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Resources for Accountants

Balance Sheet Basics Explained By A Controller [Video]

A detailed walkthrough the basics of the balance sheet including:1. The main Accounting Equation2. Current vs. non-current Assets & Liabilities 3. What is considered "Cash & Cash Equivalents"4. Deferred Revenue5. How to prepare the Balance SheetMy video on Connection Between The 3 Financial Statements: https://youtu.be/JgqUGROnFOUMy video on Accounting for Cryptocurrency: https://youtu.be/LrU9ThtRvFIMy video on How to analyze the Balance Sheet like a CFO: https://youtu.be/DMv9JC_K37YMy video on Revenue Recognition: https://youtu.be/CnlKAvu6qdIMy video on US GAAP: https://youtu.be/Yy2y_tfqKdcMy Best-Selling Products:Get My “Night Before the Accounting Interview Guide” including All Levels Q&A:https://thefincontroller.com/p/the-night-before-your-accounting-interview-guide-for-all-levels📈 Get $25 off MY ONLINE COURSE ON FINANCIAL METRICS (code: Save25)https://thefincontroller.com/p/learn-financial-metrics-kpis/?product_id=2659754&coupon_code=SAVE25&preview=logged_outMy Recommended Products (I will only share what I love ❤ here)⚪️ 🧠 Roger CPA Review Course (get 50% off): https://www.uworld.com/productreferral.aspx?ukey=8lzsxx2bT8qzYRxekeTKyWQ3d3d⚪️ 📚 Learning//SkillShare (get 2 weeks free): https://www.skillshare.com/r/profile/Bill-Hanna/7521537My Recommended Finance & Accounting Books 📚+🧠=💥⚪️ Auditing: https://amzn.to/361wJhZ⚪️ Forensic Accounting: https://amzn.to/2G6t9bo⚪️ Introduction to Finance: https://amzn.to/2ExgUEA⚪️ Introduction to Managerial Accounting: https://amzn.to/33SEyE4---------------------------------------------------------------------Hang Out with me on social media:📱https://www.tiktok.com/@thefinancialcontroller🙋🏼‍♂️https://www.facebook.com/groups/780732429036886/?source_id=101273467885666📸 https://www.instagram.com/the_financial_controller/DISCLAIMER: Links included in this description might be affiliate links. If you happen to purchase a product or service with the links that I provide I may receive a small commission. There is no additional charge to you! Thank you for supporting my channel so I can continue to provide you with free content each week!All views expressed on my channel are mine alone. Not intended as financial or professional advice

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Resources for Accountants

How to Start and Fund Your Own Business [Video]

Embarking on the journey of starting and funding your own business is akin to setting sail on uncharted waters. It's a thrilling yet daunting endeavor that demands a blend of creativity, strategy, and financial acumen. In today's dynamic business landscape, where innovation and disruption reign supreme, the allure of entrepreneurship beckons individuals eager to carve their own path and leave a mark on the world. However, navigating the complexities of business ownership requires careful planning, unwavering commitment, and access to adequate funding. This guide aims to illuminate the path ahead, offering a roadmap for aspiring entrepreneurs to transform their vision into a tangible business reality.