Submitted by sevans on Tue, 03/03/2015 - 4:04pm

A necessary prerequisite to sound funds management decisions is a sound management information system. Reports containing certain basic information should be readily available for day-to-day liquidity and funds management and during times of stress. Report formats and their contents will vary from bank to bank depending on the characteristics of the bank and its funds management methods and practices. Normally a sound management information system will contain reports detailing the following:

  • Liquidity needs and the sources of funds available to meet these needs over various time horizons and scenarios. The maturity distribution of assets and liabilities and expected funding of commitments would prove useful in preparing this report.
  • List of large funds providers.
  • Asset yields, liability costs, net interest margins and variations both from the prior month and budget. Such reports should be detailed enough to permit an analysis of the cause of interest margin variations.
  • Longer-term interest margin trends.
  • Any exceptions to policy guidelines.
  • Economic conditions in the bank's trade area, interest rate projections, and any anticipated deviations from original plan/budget.
  • Information concerning non-relationship or higher-cost funding programs. At a minimum, this information should include a listing of public funds obtained through each significant program, rates paid on each instrument and an average per program.

Information on maturity of the instruments, and concentrations or other limit monitoring and reporting.


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