Liquidity: Contingency Funding Plans and Stress Events
August 03, 2009
by
Andrew Sigl
“For financial institutions using liability-based or off-balance sheet strategies, traditional measures of liquidity may not provide an accurate view of the institution’s true liquidity position. Such institutions should augment traditional liquidity risk measures with pro forma cash flow and scenario analysis, and should have realistic contingency funding plans that are responsive to changes in liquidity risk exposure.” Source: FDIC FIL-84-2008 (“FIL-84”).
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Length: 2 pages (PDF 87 kB)