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Liquidity Crisis Management

Be prepared for a more comprehensive discussion about your current and future access to liquidity in the event asset quality deterioration accelerates. Know how each funding source reacts during periods of stress and adjust your funding mix as the environment changes.  Many financial institutions face these and other challenges in the liquidity area: increased attention from regulatory bodies; lack of time and tools to create and maintain internal liquidity models; and lack of cost-effective, robust solutions available in the market.   

An annual review of the Liquidity Policy will be a perfect opportunity to assess and update the sources & uses of liquidity and incorporate any new strategic directions.

We have been on the front-end of the market in developing and integrating contingency funding plans for our clients.  This includes stress testing asset quality deterioration, counterparty covenants, along with alternate sources & uses of funds.  Constructive feedback from various regulatory agencies has allowed us to fine-tune the liquidity management process to ensure consistency with most recent guidance and adaptability to current market conditions.

Liquidity Assessment and Management Services Include:

  • Liquidity policy review
  • Contingency funding plan development
  • Assess wholesale funding options for “your” institutions (Cheapest Sources)
  • Customized tools to measure on- and off-balance sheet liquidity
  • Comprehensive sources and uses of funds tools
  • Stress testing tools that cover a variety of adverse scenarios
  • Early warning indicators to alert the bank of any impending stressed scenarios
  • Executable solutions and strategies to cure liquidity shortfalls
  • Periodic conference calls for position assessment and strategies
  • Opportunity for call-in with examiners during a regulatory exam

If you are interested in learning more about our Liquidity Management services please send us an email or call us at 502-412-2524.