ØUnder ALM Guidelines, banks should also consider putting in place
prudential limits on inter-bank borrowings, especially call fundings,
purchased funds, core deposits to core assets, off-balance sheet commitments,
swapped funds, etc.
ØBanks should also evaluate liquidity profile under bank-specific and
market crisis scenarios.
ØContingency plans should be prepared to measure the ability to
withstand sudden adverse swings in liquidity conditions.
12
Component
of risk-Liquidity
