Large Bank Examination Workshop February 2026

Lessons Learned

• Internal Transfer Pricing • Liquidity Coverage Metrics • Stress positions in the above metric • Complex corporate structures • Poor enterprise risk management  Governance, incentives and infrastructure • Falling stock prices, increase credit default swap spreads (metric?) • Assets in custody

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Liquidity Risk Defined Liquidity risk is the potential that an institution will be unable to meet its obligations as they come due • Mismatch Risk

• Funding Liquidity Risk • Market Liquidity Risk • Contingent Liquidity Risk

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© Global Financial Markets Institute Inc.

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