At all times, a bank must be able to meet the cash flow obligations arising from deposit withdrawals and financial commitments.
The methodology to control liquidity risk is similar to that to control interest rate risk. In the latter case, we were concerned with repricing dates and the impact of a change of interest rates on the net interest margin. In this case, we are concerned with the cash position of e-Bank. Two situations will be considered: ‘normal’ times and a ‘stress scenario’.