Liquidity Ratios

Question 1

Static measures: Liquidity ratio?

Answer 1

=Liquid Assets/Total Assets

Question 2

Static measures: Liquidity gap

Answer 2

=Liquid Assets - Non Core Liabilities

Question 3

Static measures: Non-core funds dependence ratio

Answer 3

= (Non Core Liabilities (ST) - Liquid Assets)/ Long Term Earning Assets

Question 4

Dynamic liquidity measure: Dynamic gap?

Answer 4

=(Liquid Assets + Estimated Liability Liquidity) - Estimated Liquidity Needs
Liabilities liquidity = inflows
Liabilities needs = outflows

Question 5

Dynamic liquidity measure: Dynamic Ratio?

Answer 5

= (liquid Assets +Estimated Liability Liquidity)
/ Estimated Liquidity Needs
Ratio value >1 indicates available liquidity will be more than expected liquidity needs