The worst day is getting worse.
So it appears in the second-quarter liquidity risk disclosures of JP Morgan and Citigroup, both of which showed the banks plumping their cash add-on cushions. The add-ons are calculated to cover the greatest one-day difference between outflows and inflows occurring during a month of stress – a difference that appears to be jumping from quarter to quarter.
Net liquidity outflows – the difference between incoming and outgoing cash – at both banks have been rough
The week on Risk.net, September 8-14, 2018Receive this by email