Business and Personal Finance Dictionary

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• LIABILITY MANAGEMENT
  
  A term used to describe the general banking strategy of focusing on the management of the amount, maturity, and cost of core deposits and purchased funds, with an emphasis on the latter. Under liability management, bankers make loans and loan commitments to meet market conditions without concern for funding. Liability managers increase or decrease the amount of funds obtained by the bank as necessary to provide whatever funding is needed at any given time.
  
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