Capital Markets School - October 2023

Internal Use Only

Liquidity Events

High Probability, Low Impact

Low Probability, High Impact

• Daily liquidity position movements

• Significant impact on liquidity • Idiosyncratic & Systematic

• Deposit fluctuations • Public funds seasonality • Tax deposits • Typical off-balance sheet funding

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Internal Use Only

Liquidity Events

High Probability, Low Impact

Low Probability, High Impact

• Measured through base case Cash Flow analysis

• Measured through: • Liquidity Stress Testing (LST) • Contingency Funding Plan (CFP)

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