Large Bank Supervision Forum eBook

Internal Use Only

Rather than continue to focus solely on these historical categories, we must add time sequencing to our liquidity analytics to reflect the new digital reality . . .

 Minute 1  Day 1

 Week 1  Month 1  Forward Cash Flow

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© 2023 – FinPro, Inc.

Internal Use Only

Let’s talk about a bank’s Liquidity Risk Profile

What are the key risk components? − Uninsured − Stable vs Volatile − Loan Funding

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 What is the timing element of these risk components (e.g., predictable cash flow)?  How should a bank “stress test” the key risk components?  How should a bank “stress test” the timing element?  What about concentration risk − Individual − Industry (NAICS) − # accounts that control % deposits

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© 2023 – FinPro, Inc.