THE ROLE OF CASH MANAGEMENT IN INCREASING COMPANY LIQUIDITY IN THE BANKING SECTOR
Keywords:
Cash Management, Company Liquidity, BankingAbstract
This research aims to review the role of cash management in increasing company liquidity in the banking sector through a literature review. Good liquidity is essential for banking operations because it ensures the availability of funds to meet short-term obligations and supports customer trust. This study highlights the importance of effective cash management strategies to maintain a balance between liquid assets and bank liabilities. Good cash management enables efficient cash flow management, increases the bank's ability to face liquidity crises, and mitigates insolvency risks. Additionally, this study emphasizes the role of technology and data analytics in improving cash management processes. Implementing an automated cash management system and using predictive analytics can help banks predict cash flows more accurately and identify liquidity patterns, so that cash strategies can be adjusted proactively. Thus, strategic cash management supported by technology not only increases operational efficiency but also strengthens the sustainability and competitiveness of companies in the banking sector. This research supports the understanding that effective cash management is the main key in maintaining financial stability and trust in the banking industry.
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