medium · Frm Part 2 Liquidity & Treasury Risk
If a bank has $10 billion in Available Stable Funding (ASF) and $12 billion in Required Stable Funding (RSF), which statement best describes its regulatory standing regarding structural liquidity?
- The bank is compliant because the gap is only $2 billion.
- The bank is in breach because the ASF must be at least 150% of RSF.
- The bank is in breach of the NSFR requirement as the ratio is 83.3%, falling below the 100% minimum.
- The bank is compliant as long as its LCR is above 100%.
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