Question

What are the mismatch tolerance levels for time bucket

Q: Answer-What are the mismatch tolerance levels for time bucket of 15 – 28 days in the ALM statement?

In case the net cumulative negative mismatches during the Day 1, 2-7 days, 8-14 days and 15- 28 days buckets exceed the prudential limit of 5 ,10, 15 and 20 of the cumulative cash outflows in the respective time buckets, the bank may show by way of a foot note as to how it proposes to finance the gap to bring the mismatch within the prescribed limits.

of 15 – 28 days in the ALM statement?

A 20% of cash out flows

B 25% of cash out flows

C 10% of cash out flows

D 30% of cash out flows

E 50% of cash out flows

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What are the mismatch tolerance levels for time bucket

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