Large Bank Examination Workshop February 2026

Limitations of Liquidity Ratios • Definition differs from reality  Illiquid securities and liquid loans • Static, point-in-time, not forward looking • Based upon contractual maturities and do not incorporate behavioral expectations • Do not measure anticipated funding needs or access to funds

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Basel III Liquidity Ratios • Following the financial crisis, global regulators quickly determined that additional liquidity regulation was required to improve the resiliency of the financial system

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