Capital Markets Examiner School, Providence, RI

What is On Balance Sheet Liquidity?

 A static measure of current liquidity

 A starting point for stress testing and contingency planning

O n

B alance

S heet Liquidity

Highly Liquid Assets:

Measured Against:  Total Deposits  Measures the coverage of potential deposit outflows  Total Funding  If the bank has high levels of wholesale funding  Total Assets  Ability to fund growth

 Cash and Due From Accounts

 Interest Bearing Bank Balances

 Federal Funds Sold

 Unencumbered Investments