Capital Markets Examiner School, Providence, RI

Cash Flow Analysis

 After establishing the current liquidity position, does the bank have realistic baseline cash flow analysis and assumptions based on a current, expected outlook

 OBS indicates the bank’s ability to meet liquidity needs today

 Cash Flow Analysis indicates the management’s ability to manage expected inflows and outflows in the near future

Cash Flow Analysis

Sources of Liquidity

Uses of Liquidity

• Securities Portfolio

• Loan commitments

– Principal and Interest Payments – MBS cashflows – Maturities and Calls

• CD maturities

• Public funds obligations

• Loan Portfolio

– Principal and Interest Paymens – Maturities

• Repos

• Borrowing repayments such as FHLB and FRB Discount Window