Bank Analysis School

Internal Use Only

Liquidity Stress Testing – Example Scenarios

Base Case

Moderate Stress

High Stress

• Expected cash flows.

• Higher than

• Moderate stress from cash outflows plus borrowing lines terminated and use of brokered deposits restricted.

expected cash outflows (e.g. loan growth and/or deposit runoff.)

Internal Use Only

Other Liquidity Risks • Government intervention and systemic risk. • Disruption in liquidity markets. • Media attention. • SVB Coverage

Please NOTE: that these items are out of bank management’s control but can have a material impact on an institution's liquidity position.