Large Bank Examination Workshop February 2026

Asset and Liability Funding Strategies By the end of the session, the participants will be able to: • Identify and analyze asset funding sources  Liquid asset sales: securities portfolio and repo  Illiquid asset sales: whole loan sales and securitization • Identify and analyze liability funding sources  Borrowings  Debt • Evaluate potential off-balance sheet funding strategies including contingent lines

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ALM Strategies • Liquidity reports identify liquidity risks and the instruments that can be used to alter liquidity risk. • Liquidity management comes down to either reducing balance sheet or obtaining new or increased funding, especially in the short term  What assets can be sold?  What assets can be pledged to obtain funds or which liability source can be accessed?  What assets can be sold that provides the most liquidity with the least mark to market loss, less disruptive to client relationships, least effect on core business plan.

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© Global Financial Markets Institute Inc.

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