Setting Up a Liquidity Risk

You can set up for a liquidity risk analysis on your forecast assumptions Setup liquidity risk page.

1. Select Forecasting > Liquidity Risk from the menu.
2. Select Liquidity Risk > Setup.
   The primary function of the Setup page is to show the balance sheet accounts, or groups of accounts and let you choose the account subcategories for liquidity risk calculations.
3. Determine which balance sheet accounts to select for the various liquidity risk subcategories.
   
   

   

   
   

   The left panel comprises four funding categories that have a list of predefined subcategories.

   For each subcategory, you choose from accounts that belong to the described part of the balance sheet. Depending on the subcategory you choose, the accounts you select can be from the asset side of the balance sheet while other subcategories only let you select liability accounts.

   A few categories use organizational supplemental data accounts in their liquidity risk calculations.

   Use the following definitions to determine which balance sheet accounts to select for the various liquidity risk subcategories:

   Funding Needs

   Forecasted NMD's Maturities

   Non-maturity deposit accounts.

   Forecasted CD's Maturities

   Time deposit accounts, including core CDs, Brokered, National, and CDARS accounts.

   Forecasted Borrowings Maturities

   Borrowing accounts, including FHLB, Federal Reserve, Fed Funds Purchased, and more.

   Forecasted Loans New Volume

   Loan accounts.

   Forecasted Investments New Volume

   Investment accounts.

   Forecasted Fixed Assets New Volume

   Fixed asset accounts.

   Unfunded Loan Commitments

   The Unfunded Loan Commitments account appears within a list of supplemental data accounts.

   Primary Sources

   Forecasted NMD's New Volume

   Non-maturity deposit accounts. These accounts must match the Forecasted NMD's Maturities accounts under the Funding Needs category.

   Forecasted Core CD's New Volume

   Core time deposit accounts.

   Forecasted Investments Maturities

   Investment accounts. These accounts must match the Forecasted Investments New Volume accounts under the Funding Needs category.

   Forecasted Loans Maturities

   Loan accounts. These accounts must match the Forecasted Loans New Volume accounts under the Funding Needs category.

   Additional Sources

   Total Cash Equivalents

   Short-term interest-bearing investments that can mature (liquidate) quickly. These investments typically mature within 90 days.

   Forecasted Non-Core CD's New Volume

   Non-core time deposit accounts, including CDARS, QwickRate, and more. A Select Limit Accounts drop-down list appears for every account. Select an account for each previously created supplement data limit account.

   Forecasted Borrowings New Volume

   Borrowing accounts. These accounts must match the Forecasted Borrowings Maturities accounts under the Funding Needs category. A Select Limit Accounts drop-down list appears for every account. Select an account for each previously created supplement data limit account.

   Remaining Investments AFS

   Securities designated as Available for Sale (AFS). Must include any premiums, discounts, and market-to-market adjustments.

   Non-Core Funding Dependence

   Short Term Investments

   Interest-bearing investments that can mature (liquidate) quickly. These investments typically mature within 90 days. Accounts like Fed Funds Sold and REPOS - Purchased are also examples of items to select.

   Long Term Assets

   Loan accounts, HTM securities, any securities designated as AFS (must include any premium, discounts, and mark to market adjustments), and accounts designated as OREO.

   Non-Core Liabilities

   • Time deposit accounts (or subtotal) with a balance greater than $100,000
   • Borrowing accounts, including FHLB, Federal Reserve, and Fed Funds Purchased
   • Secondary market CDs
   • REPOS - Sold accounts within the borrowings section of your balance sheet

4. Select Save as you make your category and subcategory selections.