Prediction of development of the bank

3. Definitions of the planning period to assess liquidity. The choice of frequency and time intervals for each bank individually to make appropriate, depending on the intensity distribution of the bank's cash flows over time, the relative uniformity of the payments within the selected time period and business cycles, in which the bank operates. Bank's liquidity position should be assessed in the short and long intervals. Short-term liquidity position, as a rule, is calculated for a month with a daily breakdown. Long-term liquidity position is calculated for the quarter with monthly breakdown. To improve the accuracy of the calculation of the bank's liquidity position at all time intervals should take into account the movement of funds for active and passive accounts, transactions which do not have a specific time period (operation for a period of demand). Such transactions should be recorded on the basis of the forecast values ​​of motion on demand accounts in this time interval and taking into account the impact on them of the conditions of the bank on alternative scenarios. Just when calculating the bank's liquidity position on alternative scenarios should take into account the effect of changes in the terms of the bank's return on the value of assets, ebb and flow of clients' funds in bank accounts, changing the value of other cash flows. In the present circumstances, when there is an increased likelihood of a liquidity shortage, including for reasons beyond the Bank's reasons for "increased flexibility" should take into account the ability to move or even failure of individual payments. 4. Calculation of the need for liquidity of the bank for selected time intervals or alternatives. Category: Management Operations Commercial Bank | Tags: forecast