Very few banks have mastered the art of accountability when it comes to liquidity management. Corporate treasury and finance generally are responsible for the function in most institutions, depending on the purpose for which liquidity is being managed, but often neither one has it firmly in its domain.

Moreover, problems can arise when treasury does not charge lines of business for the use of liquidity — and often it does not. If business units are not paying for the use of daylight liquidity, they have no incentive to take ownership of the processes around it.

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