Bank Analysis School September 2023 - Presentations & Resources

APPENDIX B – Understanding Cash Flows

Future Cash Position

Cash

Outflows

Inflows

Source (Inflow)

Use (Outflow)

 Assets

 

 

 Liabilities/Capital

Note: be mindful of non-cash accounting entries (e.g. depreciation, accruals).

Inflow/Source Examples

Use/Outflow Examples

• Loan payments/payoffs • Investment payments, maturities, sales

• New loans • New investments

Asset-Based

• Deposit growth • New borrowings

• Deposit runoff • Debt payments/payoffs

Liability-Based