Funds management involves the supervision and control of a financial institution's cash flow. The fund manager ensures that the maturity schedules of deposits align with the demand for loans. To achieve this, the manager examines both the liabilities and assets that impact the bank's ability to extend credit.
Funds management, also known as asset management, encompasses any system that preserves the value of an entity. This can be applied to intangible assets such as intellectual property and goodwill, as well as tangible assets like equipment and real estate. It entails the systematic process of operating, deploying, maintaining, disposing of, and upgrading assets in the most cost-effective and profit-generating manner possible.