Large Bank Examination Workshop February 2026

Liquidity Must Haves

Governance • Liquidity Risk Appetite Statement (RAS) with board approval/senior management governance • Treasury area to set strategy and planning • Independent risk area/review/escalation procedures • New Product Approval (NPA) process that includes liquidity review • Policies and procedures • Business as Usual (BAU) funding plan that projects key ratios such as Liquidity ratio, loans to deposits, etc. • Define prohibited activities • Exception process, escalation procedure, approval documentation 27

Liquidity Must Haves (cont.) Limits • Liquidity ratios/limits • Liquidity cash flow report/limits  Liquidity analysis should show risks by individual currency and consolidated basis • Early Warning Indicators for liquidity Scenario analysis • Liquidity Stress Test (LST) with well researched and supported assumptions that includes impact from traded products, structured liabilities, off balance sheet etc. • Contingency Funding Plan (CFP) that is derived from Liquidity Stress Test (LST) and RAS

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