FRM Part II · FRM Exam Part II · Monitoring Liquidity
A bank's treasury team wants to know the largest amount of intraday liquidity it relied on during a day, measured as the greatest net cumulative negative position on its settlement account. Which BCBS 248 intraday monitoring tool does this describe?
This describes daily maximum intraday liquidity usage. It captures the peak net cumulative negative position on the settlement account during the day, showing the most liquidity the bank needed intraday, unlike measures of opening resources, gross payment flows or time-critical obligations.
- ADaily maximum intraday liquidity usageCorrect
- BAvailable intraday liquidity at the start of the business day
- CTotal payments made and received
- DTime-specific obligations
Explanation
Daily maximum intraday liquidity usage is the largest net cumulative negative position (payments sent minus received) during the day. Available intraday liquidity measures resources at the start of the day, not usage. Total payments measures gross flows, and time-specific obligations measure payments due at set times.
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