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Assume a bank only has 10 days of liquidity in the base case scenario (i.e./ positive net cash flow) but it needs to push it
Assume a bank only has 10 days of liquidity in the base case scenario (i.e./ positive net cash flow) but it needs to push it out to 15 days to be compliant with an upcoming policy change. What action would it need to take in order to become compliant with the policy change? |
Issue 30-day debt and invest the proceeds in a 30-day asset
Issue 30-day debt and invest the proceeds in an overnight asset
Issue an overnight liability and invest the proceeds in a 30-day asset
Issue an overnight liability and invest in an overnight asset
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