| Summary: | Cash management in Banking Industry require special intention cause by it
related with liquidity risk, operational risk and profitability risk of a bank,
therefore effective cash management is a mandatory
Objective of this study is to calculate optimum cash balance in Bank XYZ
using Miller Orr methodelogy
Result shows Bank XYZ using most of its net cash flow (70%) to mitigate
future liquidity risk in form of current account at Bank Indonesia. Optimum cash
balance counted using Miller Orr Methodlogy is IDR 1,117,390,084,183 lower
compared than targeted optimum cash balace by Bank XYZ management which is
IDR.1.5 Trilliun
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