Liability Management

  

Categories: Accounting

Banks are, by nature, conservative. They want to keep an even keel. Most of the time. Sometimes, of course, they get as wild as a bachelorette party in Vegas...we’re looking at you, 2007-2008. But let's just agree to the general premise that, most of the time, banks are stereotypically pretty...button-down.

As banks generally look to keep risk under control, they purposely create a mix in their assets and debt obligations, so they have a safe amount of diversification.

This practice is known as liability management. It involves keeping a mix of maturities and products when they make loans or other investments.

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Finance: What is liability?3 Views

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Finance allah shmoop What is a liability What is it

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it's what you owe you bought four million gumballs on

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is owed to gumballs are us in ninety days that's

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a short term liability Alright next example you borrowed eighty

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drive through service and that money is due in twelve

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term liability Why long term Because it comes due in

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in this space ride over here So yeah that's a

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liability all this crap time now considering how many gumballs

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