Annual Report - VÃB banka
Annual Report - VÃB banka
Annual Report - VÃB banka
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(c) Liquidity risk<br />
Liquidity risk is a measure of the extent to which the<br />
Bank may be required to raise funds to meet its commitments<br />
associated with financial instruments. The<br />
Bank maintains its liquidity profiles in accordance<br />
with regulations laid down by the NBS.<br />
The Bank is exposed to daily calls on its available<br />
cash resources from overnight deposits, current<br />
accounts, maturing deposits, loan draw downs,<br />
guarantees and from margin and other calls on<br />
cash settled derivatives. The Bank sets limits on<br />
the minimum proportion of maturing funds available<br />
to meet such calls and on the minimum level of<br />
interbank and other borrowing facilities that should<br />
be in place to cover withdrawals at unexpected levels<br />
of demand.<br />
The daily liquidity position is monitored and regular<br />
liquidity stress testing is conducted. The daily<br />
liquidity position is limited by set of liquidity limits<br />
for particular time buckets. The Bank has approved<br />
the contingency liquidity plan, which defi nes how<br />
to identify potential liquidity problems and how to<br />
act in liquidity crisis situations. All liquidity policies<br />
and procedures are subject to review and approval<br />
by ALCO and Intesa Sanpaolo.<br />
The key measures used by the Bank for managing<br />
medium and long term liquidity are two maturity<br />
mismatch rules.<br />
Rule 1: Real Estate + Equity Investments
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