The future of branch cash holdings management is here: New Markov chains

Cabello, Julia García

doi:10.1016/j.ejor.2016.11.012

Cited by 9 publications

(3 citation statements)

References 20 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…The Markov chain branch of Monte Carlo (MCMC; Metropolis et al, 1953 ) is a more advanced method in handling a highdimensional probability distribution. Markov chains involve the idea that a random sample is generated by a sequential process in which each new sample depends on the previous one ( Cabello, 2017 ). In banking studies, MCMC is usually applied to estimate the posterior distribution in Bayesian inference, which helps to generate highly efficient results from large samples.…”

Section: Monte Carlo Simulationmentioning

confidence: 99%

Operational Research and Artificial Intelligence Methods in Banking

et al. 2022

View full text Add to dashboard Cite

Section: Monte Carlo Simulationmentioning

confidence: 99%

Operational Research and Artificial Intelligence Methods in Banking

et al. 2022

View full text Add to dashboard Cite

“…In fact, the LCR was devised to be able to check if banks hold a sufficient reserve of high‐quality liquid assets that allow them to survive in conditions of significant liquidity stress lasting for 30 calendar days, see Reference [20]. Such tests are periodically performed not only to meet the external regulatory standards but also for internal security reasons to avoid dormant money at branches, since liquidity comes at a cost: keeping liquid assets in cash involves the corresponding opportunity costs of not investing in other alternative products which bring clear benefits, see Reference [7].…”

Section: Cash Level Ewsmentioning

confidence: 99%

“…Despite the complexity of the subject, most authors agree that accurate cash management of liquid resources at both bank and branch level is determinant in reducing risk exposure as well as guaranteeing financial solvency. [2][3][4] In particular, some authors 5,6 think that precise cash management at a bank level is largely supported by careful cash management at a branch level, see Reference [7], for further details.…”

Section: Introductionmentioning

confidence: 99%

A novel intelligent system for securing cash levels using Markov random fields

Cabello

2021

Int J Intell Syst

Self Cite

View full text Add to dashboard Cite

The maintenance of cash levels under certain security thresholds is key for the health of the banking sector. In this paper, the monitoring process of branch network cash levels is performed using a single intelligent system which should provide an alert when there are cash shortages at any point of the network. Such an integral solution would provide a unified insight that guarantees that branches with similar cash features are secured as a whole. That is to say, a triggered alarm at a specific branch would indicate that attention must also be paid to similar (in‐cash‐feature) branches. The system also incorporates a (complementary) specific treatment for individual branches. The Early Warning System for securing cash levels presented in this paper (cash level EWS) is deliberately free of local demographic specifications, thereby overcoming the current lack of worldwide definitions for local demographics. This aspect would be particularly valuable for banking institutions with branch networks all over the world. A further benefit is the cost reductions that are a result of replacing several approaches with a single global one. Instead of local demographic parameters, a solid theoretical model based on Markov random fields (MRFs) has been developed. The use of MRFs means a reduction in the amount of information required. This would mean a higher processing speed as well as a significant reduction in the amount of storage capacity required. To the best of the author's knowledge, this is the first time that MRFs have been applied to cash monitoring.

show abstract

What Do We Know About Corporate Cash Holdings? A Systematic Analysis

Cruz¹,

Kimura²,

Sobreiro³

2019

J Corp Accounting Finance

View full text Add to dashboard Cite

Cash holdings play an important role at the heart of firms' policies. Researchers have devoted considerable attention to the dramatic increase in cash reserves despite alternative instruments such as debt, derivatives, and credit lines. The finance literature discusses the antecedents and determinants of cash holdings as well as the different reasons for firms to hold cash. In this paper, we present a systematic literature review of cash holdings in the finance field. The major studies in this area are classified and coded, and a research agenda and recommendations that may advance the field are discussed. © 2019 Wiley Periodicals, Inc.

show abstract

The future of branch cash holdings management is here: New Markov chains

Cited by 9 publications

References 20 publications

Operational Research and Artificial Intelligence Methods in Banking

Operational Research and Artificial Intelligence Methods in Banking

A novel intelligent system for securing cash levels using Markov random fields

What Do We Know About Corporate Cash Holdings? A Systematic Analysis

Contact Info

Product

Resources

About