Question

If a bank has a Liquidity Coverage Ratio of 104%, and HQLA of $45,650,000, how much does the bank expect to run off in cash flow during the next 30 days?

Ans: ________________________

A bank has an NSFR of 178%. How much more stable capital does the bank have compared to its RSF, if the required amount is $1.673 billion?   Ans: _______________________________

Answer 1

Liquidity Coverage Ratio   104%  
HQLA   45,650,000  
How much does the bank expect to run off in cash flow over the next 30 days?      
LCR = HQLA / Net cash flow over 30 days      
Net cash flow over 30 days = HQLA / LCR = $43,894,231   
      
      
      
NSFR   178%  
How much more stable capital does the bank have compared to its RSF, if the required amount is $1.673 billion?     
NSFR = Total Available Stable Funding / Total Required Stable Funding      
which should be greater than or equal to 100%      
Total Required Stable Funding    $1.673 billion
Total Available Stable Funding = NSFR x Total Required Stable Funding    $2.978 billion
Excess Stable Funding available = Total Available Stable Funding - Total Required Stable Funding    $1.305 billion