The future of branch cash holdings management is here: New Markov chains
Metadatos
Mostrar el registro completo del ítemAutor
García Cabello, JuliaEditorial
European Journal of Operational Research (ELSEVIER)
Fecha
2017Referencia bibliográfica
García Cabello, J. (2017). The future of branch cash holdings management is here: New Markov chains. European Journal of Operational Research, 259(2), 789-799.
Resumen
Liquidity management is one of the main concerns of the banking sector since it provides control in
key areas such as treasury management, working capital financing and business valuation. Under
the assumption that branch efficiency makes a fundamental contribution towards the effective performance of the global banking institution, this paper provides a new methodology (Markov Chains
by blocks) in order to achieve knowledge on the branch cash holdings: conditions which ensure
optimal cash holdings, recurring properties which help to better predict cash holdings shifts and the
study of the branch cash holdings steady-states using Ergodic Theory. These findings will let bank
managers know the time validity of the current cash holdings. This is a crucial advantage to ensure
efficient cash management: while helping keep banking institutions on sound financial footing by
guaranteeing the compulsory-by-law safety cushion, it also allows bank managers to make sound
decisions upon fund investments.