Large Bank Examination Workshop February 2026

Assumptions/Drivers

• Client Behavior  Early Withdrawal  Renewal  Run-off  Matched-book • Options  Loan/MBS Prepays  Calls on Assets  Puts on Liabilities

• Seasonality

 Month end/Year end

• Investments

 Run-off, new purchases

• Time buckets

 Daily, weekly, monthly?  Time span measured?

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Strengths of Liquidity Ratios • Good starting point for off-site analysis • Summarize a lot of information in an easy-to understand format • Provide good trend information

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© Global Financial Markets Institute Inc.

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