Bank Analysis School eBook

Contingency Funding Plan

“ All institutions , regardless of size and complexity, should have a formal Contingency Funding Plan (CFP) that clearly sets out the strategies for addressing liquidity shortfalls in emergency situations.”

2014 Fedlinks: Supervisory Expectations for CFP

Cash Flow Projections

“Static balance sheet measures [e.g. ratios] may not reveal significant liquidity risk…and generally should not be the sole measures used to monitor and manage liquidity.”

“The process of measuring liquidity risk should include robust methods for comprehensively projecting cash flows arising from assets, liabilities, and off-balance sheet items over an appropriate set of time horizons.”

Link: Cash Flow Example Layout