Funds Management

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DEFINITION of 'Funds Management'

The management of the cashflow of a financial institution. The funds manager ensures that the maturity schedules of the deposits coincide with the demand for loans. To do this, the manager looks at both the liabilities and the assets which influence the banks ability to issue credit.

BREAKING DOWN 'Funds Management'

A fund manager must also pay close attention to cost and risk in order to really capitalize on the cash flow opportunities. A financial institution runs on the ability to offer credit to customers. Ensuring the proper liquidity of the funds is a crucial aspect of the fund managers position. Funds management can also refer to the management of fund assets.

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