Liquidity Risk

The Liquidity Risk tool uses your forecast assumptions to measure your liquidity position and identify risk.

In today’s financial environment, measuring your forecasted liquidity position is a vital part of determining the risk that resides in your balance sheet. What can be an appropriate level of liquidity when loan demand is low could not be adequate when loan demand is high. The point at which your institution becomes illiquid is difficult to determine. At this point, you can find it difficult to raise funds quickly and at a reasonable cost.

The Liquidity Risk tool allows you to:

• Identify potential liquidity concerns in forecasted time periods.
• Identify your primary and secondary liquidity sources.
• Measure your liquidity sources against your forecasted funding needs.
• Identify any liquidity surplus or deficit that exists.
• Identify your current funding mix.
• Measure the percentage of deposit outflow that you can withstand.
• Calculate your net Non-Core Funding Dependency ratio.
• Use these assumptions in multiple what-if forecast scenarios.