medium · Frm Part 2 Liquidity & Treasury Risk
A bank's total outgoing payment value for the day is $40bn. Throughput guidelines require 50% settlement by 12:00 PM and 80% by 2:00 PM. By 12:00 PM, the bank has settled $18bn. By 2:00 PM, it has settled $34bn.
Which statement accurately describes the bank's compliance?
- The bank passed both benchmarks because the cumulative settlement exceeded $32bn by early afternoon.
- The bank failed both benchmarks because it did not settle the full $40bn by the close of the CLS window.
- The bank failed the 12:00 PM benchmark (settled 45%) but passed the 2:00 PM benchmark (settled 85%).
- The bank is in compliance as long as its end-of-day LCR remains above 100%.
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