Corridor runway vs Liquidity buffer: what is the difference?
Corridor runway measures time: how many days a prefunded balance lasts at the current outflow. A liquidity buffer measures money: how much is held above expected needs. Runway tells you when; the buffer tells you how much room you have.
| Corridor runway | Liquidity buffer | |
|---|---|---|
| In one line | Corridor runway is the number of days until a corridor's prefunded balance runs out at the current outflow rate. It counts top-ups already in flight and is an operating metric coined by Polynopsis. | Liquidity buffer means a reserve of cash or highly liquid assets held above expected needs. It lets a firm keep paying when flows turn out worse than forecast. |
| Read more | Corridor runway | Liquidity buffer |
How they work together
Set the buffer as a runway target, for example enough to cover a long weekend, and top up whenever runway drops below it.
Where Polynopsis fits
Polynopsis coined corridor runway and works it out for every corridor, counting top-ups already in flight, with an alert before a corridor runs dry. Try it with the corridor runway calculator.
Polynopsis shows how far each balance sits above the payouts expected against it, which is the buffer, and warns before that buffer is used up.
Frequently asked questions
What is the difference between corridor runway and liquidity buffer?
Corridor runway measures time: how many days a prefunded balance lasts at the current outflow. A liquidity buffer measures money: how much is held above expected needs. Runway tells you when; the buffer tells you how much room you have.
What is Corridor runway?
Corridor runway is the number of days until a corridor's prefunded balance runs out at the current outflow rate. It counts top-ups already in flight and is an operating metric coined by Polynopsis.
What is Liquidity buffer?
Liquidity buffer means a reserve of cash or highly liquid assets held above expected needs. It lets a firm keep paying when flows turn out worse than forecast.
Sources
- Why is pre-funding required in the money transfer world? · Faisal Khan
- Remitly Global, Inc. Form 10-Q for the quarter ended 30 September 2024 · U.S. Securities and Exchange Commission (EDGAR)
- Consultation Paper on Liquidity Buffers and Survival Periods (CP28) · Committee of European Banking Supervisors (hosted by the European Banking Authority)
- Liquidity Regulation and Central Banking (speech by Governor Jeremy C. Stein) · Board of Governors of the Federal Reserve System
- International Money Express, Inc. Form 10-K for fiscal year 2024 · U.S. Securities and Exchange Commission (EDGAR)
- The Payment Services Regulations 2017, regulation 23 (Safeguarding requirements) · legislation.gov.uk (The National Archives)
Know where all your money is.
Polynopsis gives cross-border payment teams one live position across every bank, payout partner, exchange and wallet, including money in flight, and warns before a corridor runs dry.
About Polynopsis
Polynopsis is liquidity management software for cross-border payment companies. The name joins poly, many, and synopsis, a seeing together: one live view of money spread across many banks, payout partners, exchanges and stablecoin wallets, including money in flight, with a warning before any corridor runs dry.
Why it is called Polynopsis · About Polynopsis · Glossary · Corridor runway calculator