Investor Presentaiton
MORGAN STANLEY BANK ASIA LIMITED
NOTES TO THE FINANCIAL STATEMENTS
Year ended 31 December 2020
24.
FINANCIAL RISK MANAGEMENT (CONTINUED)
Liquidity risk (continued)
Liquidity Resources (continued)
The Company holds its own Liquidity Resources which is composed of diversified cash and cash
equivalents and unencumbered highly liquid securities.
Eligible unencumbered highly liquid securities include primarily non-US government securities in
addition to US government securities.
Funding Management
The Company manages its funding in a manner that reduces the risk of disruption to the Company's
operations. The Company pursues a strategy of diversification of secured and unsecured funding sources
(by product, investor and region) and attempts to ensure that the tenor of its liabilities equals or exceeds
the expected holding period of the assets being financed.
The Company funds itself through diverse sources. These sources include the Company's equity capital,
borrowings and deposits.
Balance sheet management
In managing both the Morgan Stanley Group's and the Company's liquidity risk the composition and
size of the entire balance sheet, not just financial liabilities, is monitored and evaluated. The liquid nature
of the marketable securities and short-term receivables arising principally from sales and trading
activities in the Institutional Securities business provides the Morgan Stanley Group and the Company
with flexibility in managing the composition and size of its balance sheet.
Maturity analysis
In the following maturity analysis of financial liabilities, derivatives not held as part of the Company's
trading activities are disclosed according to their earliest contractual maturity; all such amounts are
presented at their fair value, consistent with how these financial liabilities are managed. All other
amounts represent undiscounted cash flows payable by the Company arising from its financial liabilities
to earliest contractual maturities as at 31 December 2020 and 31 December 2019. Repayments of
financial liabilities that are subject to immediate notice are treated as if notice were given immediately
and are classified as on demand. This presentation is considered by the Company to appropriately reflect
the liquidity risk arising from those financial liabilities, presented in a way that is consistent with how
the liquidity risk on these financial liabilities is managed by the Company.
31 December 2020
Financial liabilities
Deposits of banks
Deposits of non-bank customers
Deposits of other Morgan Stanley Group
undertakings
Trading financial liabilities:
Derivatives
Trade and other payables
Total financial liabilities
Unrecognised financial instruments
Unsettled securities purchased
under agreements to resell
On
demand
US$'000
Less than 1 month 3 months -
1 month 3 months 1 year
US$'000 US$'000 US$'000
1 year -
5 years
US$'000
Total
US$'000
2,053
5,648,210
320,201
439,782
399,180
2,053
6,807,373
9,400
5,659,663
6,299
29,323
355,823
2,842
53,878
496,502
2,131
3,616
404,927
34,399
11,272
130,616
34,399 6,951,314
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