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Liquidity and treasury

Cash flow forecasting

Projecting the cash coming in and going out over a future period so a business or bank can plan its funding and liquidity.

Cash flow forecasting estimates future receipts and payments over days, weeks or months. It tells treasury when cash will be short or in surplus, so funding can be arranged in advance and idle balances put to work.

Good forecasting blends known flows, such as scheduled loan repayments, with modelled ones, such as customer deposits, and it is the starting point for managing liquidity risk.

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