5. Liquidity
Here we focus on the liquidity levels and how well funds-management practices are developed. The bank rated by number 1 has reliable access to sufficient sources of funds to meet present and anticipated liquidity needs.
6. Sensitivity to Market Risk
Banks and other institutions are liable to a number of risks and the Component Ratings for Sensitivity to Market Risk examines this area. Every bank should control and maintain risk-management practices to be satisfactory for the size and sophistication of the bank.
Number 1 signifies a stable, well controlled institution with minimal potential that the earnings performance or capital position will be adversely affected. Number 5 singifies an unacceptable market-risk sensitivity and institution with such rating has to take immediate and significant actions.
Here we focus on the liquidity levels and how well funds-management practices are developed. The bank rated by number 1 has reliable access to sufficient sources of funds to meet present and anticipated liquidity needs.
6. Sensitivity to Market Risk
Banks and other institutions are liable to a number of risks and the Component Ratings for Sensitivity to Market Risk examines this area. Every bank should control and maintain risk-management practices to be satisfactory for the size and sophistication of the bank.
Number 1 signifies a stable, well controlled institution with minimal potential that the earnings performance or capital position will be adversely affected. Number 5 singifies an unacceptable market-risk sensitivity and institution with such rating has to take immediate and significant actions.