Building liquidity resilience amid funding and market pressures

Senior liquidity risk leaders weigh shifting funding dynamics, regulatory uncertainty and the limits of traditional stress frameworks. The group observed that post-2023 reforms had prompted firms to re-examine behavioural assumptions in liquidity stress models. Many are now layering in faster outflow speeds and intraday run dynamics, informed by social-media-driven information flows.

Key takeways:

• While liquidity positions remain strong overall, participants warned that underlying funding structures are less stable than balance sheets suggest.
• Deposit volatility – particularly from corporate and institutional clients – continues to challenge assumptions built into liquidity stress models.
• Interest rate uncertainty and term funding fragility remain core risks as markets adjust to an extended ‘higher-for-longer’ rate environment.
• Several institutions are reassessing behavioural assumptions around deposits, drawing lessons from 2023’s US regional bank turmoil.
• Stress-testing frameworks are being recalibrated, with an emphasis on intraday liquidity, collateral mobility and second-order contagion effects.
• Data integration and cross-entity visibility are emerging as key enablers for more dynamic liquidity management.
• Regulatory approaches diverge: US supervisors are focusing on intraday liquidity and real-time monitoring, while European regulators push for more granular reporting and shorter lookback periods.
• Liquidity leaders anticipate greater supervisory scrutiny in 2026, but stress the need for practical proportionality in applying bank-run scenarios to different business models.