Question

what is the purpose of liquidity stress testing? What is its role and useful for? （using...

what is the purpose of liquidity stress testing? What is its role and useful for? （using own words， thanks）

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Liquidity stress testing assesses the ability of a financial institution to meet its obligations during periods of stress. It measures the liquidity profile of the balance sheet of The Financial Institutions at an enterprise level. The purpose of liquidity stress testing is to ascertain if if a particular institution has enough resources to be able to meet unexpected market disruptions. This includes analysis of multiple scenarios and performance of the test under different time Horizons. The results are used to determine the liquidity buffer and prepare a suitable contingency funding plan.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
What are the reasons for stress testing and explain each one.
What are the reasons for stress testing and explain each one.
Can acute stress ever be useful? How can you handle stressful situations effectively and what stress...
Can acute stress ever be useful? How can you handle stressful situations effectively and what stress management strategies or skills might you use?
37. Which of the following ratio is useful in assessing the liquidity (i.e., the ability of...
37. Which of the following ratio is useful in assessing the liquidity (i.e., the ability of a company to pay its current liabilities using current assets) of a company? Select one: a. debt ratio b. current ratio c. inventory turnover rate d. gross margin ratio
What is the role of water pressure? what role does hydrostatic pressure play in maintaining a...
What is the role of water pressure? what role does hydrostatic pressure play in maintaining a plants posture? What human structure depends on hydrostatic pressure to maintain its shape and to fulfill its special purpose?
What would you describe as the purpose of community psychology? How is it particularly useful in...
What would you describe as the purpose of community psychology? How is it particularly useful in working with diverse families, especially the parents in these families?
Explain what the purpose of the veil of ignorance is. Be precise, thorough, and use your...
Explain what the purpose of the veil of ignorance is. Be precise, thorough, and use your own words.
What role does stress play in CVD, cancer, and chronic conditions? Do you think gender, race,...
What role does stress play in CVD, cancer, and chronic conditions? Do you think gender, race, ethnicity, and/or socioeconomic status have an effect on amount of stress we experience? How do gender, race, ethnicity, and/or socioeconomic status effect rates of CVD and other chronic conditions? How do you relieve stress?
In your own words, describe the general purpose of cellular respiration? (In other words, what is...
In your own words, describe the general purpose of cellular respiration? (In other words, what is the ‘big picture’ of this chapter?)
What is the purpose of the cash short and over account? How does it affect the...
What is the purpose of the cash short and over account? How does it affect the income statement? in your own words
Experiment The role of Apaf-1 protein in response to cellular stress induced by increased osmotic pressure...
Experiment The role of Apaf-1 protein in response to cellular stress induced by increased osmotic pressure outside the cells (hyperosmotic stress) was studied. Wild-type mouse embryonic fibroblasts (Apaf-1+/+cells) and homozygous Apaf-1 knock-out fibroblasts (Apaf-1–/–cells) were cultured in hyperosmotic medium for the time periods indicated in the figure. Protein extracts were prepared and subjected to Western blot analysis using anti-Apaf-1, anti-caspase-3, anti-eIF2α, and anti-tubulin antibodies, and an antibody specific for the phosphorylated form of eIF2a [labeled eIF2a-P(S51) in the figure]. Figure...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT