easy · Frm Part 2 Liquidity & Treasury Risk
What role do Early Warning Indicators (EWIs) play within a robust Contingency Funding Plan framework?
- They serve as the denominators in the calculation of the Net Stable Funding Ratio (NSFR).
- They are purely qualitative 'cultural' indicators used to assess the bank's risk appetite.
- They act as the primary method for calculating the bank's daily Net Interest Margin (NIM).
- They are wired to calibrated thresholds that trigger pre-assigned escalation levels and authorities.
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