Large Bank Examination Workshop February 2026

Liquid Assets • Comprise a critical component of a bank’s ability to respond effectively to a stress event • An institution’s liquid asset cushion should be aligned with its risk tolerance and profile and supported by stress test results. • Unencumbered, highly liquid assets must be readily available  Liquid assets that can be sold or pledged to obtain funds under a range of stress scenarios • The quality of the assets is a critical consideration  Affects a bank’s ability to sell or pledge the assets in times of stress. 111

Stress Scenario Results • Identify scenarios that produce negative cash flows or liquidity shortfalls • Develop plan of action to counterbalance these actions • Identify size of HQLA buffer required and other liquid assets • Develop CFP that identifies governance and actions

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