BFM Numericals Solved · Part 3: Treasury and ALM

Chapter 10: LCR, NSFR and structural liquidity

Whether a bank can meet a month of stress from its own liquid assets, whether its funding will last the year, and how its cash flows line up day by day.

Buyers of the e-book, or of the print copy, which includes it, read the whole chapter. Everyone can read the free sample, pages 1 to 24 of the e-book.

In this chapter

• 10.1Liquidity riskp. 213
• 10.2Structural liquidityp. 213
• Bank D’s first monthp. 214
• 10.3The LCR and HQLAp. 215
• Outflows under stressp. 216
• Bank D’s LCR, and the 2026 changep. 217
• Four 30-second routesp. 218
• 10.4The NSFRp. 219
• 10.5Repairing the ratiosp. 220
• Which formula? A map of the chapterp. 221
• Exam traps and conventionsp. 222
• Practice: 30 questions in three roundsp. 223
• Answers, with every wrong option explainedp. 226
• Make it stickp. 229
• Chapter 10 on one pagep. 230

Corrections and updates

None for this chapter so far. Every correction to the book, and any rule that changes after its date, is listed on the errata page.