Operating Cash Research Articles

How Closely Do Banks Manage Vault Cash?

This article examines daily vault cash balances in the Eighth Federal Reserve District to see if banks have been optimizing their vault cash levels. Recent reductions in reserve requirements have not been accompanied by significant reductions in vault cash. This situation suggests that banks may be managing vault cash reserves primarily as precautionary balances to satisfy daily fluctuations in deposits and withdrawals, rather then part of total reserve management. In 1997, some larger banks instituted formal management of vault currency. If this practice spreads, it will have implications for monetary policy and cash operations.

Trends in the Convenience Store Industry

ABSTRACT Noncommercial foodservices are operating convenience stores to meet consumer demand, remain competitive, and increase revenue. College and university, business and industry, and healthcare foodservice operations are revolutionizing outmoded cash operations by incorporating convenience store concepts. Noncommercial foodservice operations increasingly view commercial food-services as their competitors. Shrinking budgets under the current political climate motivate noncommercial foodservices to develop innovative strategies for generating revenue. The convenience store offering branded quick-service food is emerging as a solution. Food-service directors employed by colleges and universities, business and industry, and healthcare should keep abreast of opportunities and innovations occurring within the convenience store industry. Operators should incorporate continuous quality improvements with a focus on satisfying consumer demand within all components of their operations, including convenience stor...

ORGANIZATION OF BANKS CREDIT SERVICE

Summary.The credit system is of great importance in ensuring the continuity of production, regulating money circulation and its movement, as well as in financing extensive reproduction. In the presented article, along with the rules of organization of commercial banks, the characteristics of their activities in modern conditions are reflected. The operations and services provided by modern banks, especially the attraction of savings and deposits to banks, the provision of various credit services, the foreign exchange market and currency operations, transactions with securities, leasing, trust, factoring operations, cash and non-cash settlements, cash operations, etc. It is important to note in detail the rules and features of the organization and application of operations and services.

A Weighted Cash Conversion Cycle

0 One principle of finance is to collect cash as quickly as possible and postpone the outflow as long as possible. This cash management principle is based on the traditional concepts of the cash operating cycle (OC) and the cash conversion cycle (CCC) shown in Richards and Laughlin (RL) [8]. The CCC is based on accrual accounting information and is indirectly related to a firm's valuation. That is, a short CCC vis-a-vis a lengthy CCC usually indicates the firm is receiving cash quickly while paying suppliers close to the due date. The result is a higher present value of the net cash flows and the value of a firm, or vice versa. Likewise, the shorter the CCC, the more efficient the internal operations of a firm and the closer the availability of net cash flow, which suggests a more liquid condition of the firm, or vice versa. The cash conversion cycle is an additive function. It measures the number of days funds are committed to inventories and receivables, less the number of days that payment to suppliers is deferred.1 The CCC focuses only on the length of time funds are tied up in the cycle and does not take into consideration the amount of funds committed to a product as it moves through the operating cycle. A primary aim here is to take into account both the timing of the flows and the amount of funds used in each segment of the cycle by introducing the concept of aweighted cash conversion cycle (WCCC).

The cost of environmental regulations to the United States petroleum industry

This paper presents estimates of environmental control costs to the United States domestic petroleum industry through 1990.* It shows both the combined costs of existing and expected regulations and the incremental costs of specific controls which might be added or deleted from the overall set of regulations. All sectors of the domestic petroleum industry, from exploration and production to marketing, have been considered in a consistent manner. Both capital expenditures and cash operating costs have been calculated. The results are reported as an equivalent annual cost that includes the cost of capital at 12.5 % (after taxes) and capital recovery (depreciation) as well as annual cash operating costs. Estimates of energy consumption for both construction and operation of pollution abatement facilities have been developed.

The Economic Effects of Regulation: A Case Study of the Consumer Finance Industry

The perennial controversy over the desirability of more or less direct regulation of business has generated surprisingly few empirical studies of the effects of this kind of regulation. This study illustrates the nature of the pervasive economic effects of direct regulation. It is a case study of the impact which ceilings on interest rates and maximum limits on sizes (here called loan limits) have on the characteristics of services, the market structure, industry size, and earnings of lenders in the consumer finance industry. The consumer finance industry comprises the cash operations of finance companies which are regulated by special state statutes. Each state sets a single maximum limit on the sizes of loans which

Sucursal del Banco Nacional de Hawai

There are three entrances to this Bank, on the ground floor. Two of them face Kapiolani street, and the third leads out to the parking zone. The internal distribution of this building has three main divisions. One is devoted to cash operations, and has a most singular planform. Another comprises the main public hall and the offices of the section chiefs and other staff. There is finally a department dealing with credits: this has a consultation office, a records and a waiting room. The external appearance is significant in that the building is enclosed in a trellised curtain wall which also serves to protect the building from the strong sun.