Investor Presentaiton
MyState
Sub Debt Issue | Investor Presentation 42
Limited
Contingent funding plan & liquidity stress testing
The Contingent Funding Plan (CFP) is undertaken and tested regularly as part of
MyState's liquity risk management framework. Testing includes a fire drill test run
by ALCO (at least annually) and regular testing of RBA repurchase capability
The CFP includes detailed contingent funding options and strategies that are
available to MyState in the event of deteriorating liquidity conditions
The CFP is supported by a series of risk metrics, early warning indicators
(qualitative and quantitative) and escalation protocols that have been designed to
identify the emergence of increased risk or vulnerabilities in MyState's liquidity risk
position or potential funding needs and allow MyState to take remediation actions
as appropriate
MyState undertakes quarterly liquidity stress testing as part of its enteprise wide
stress testing framework. These stress tests consider the efficacy of contingent
funding options against idiosyncratic and systemic scenarios at varying degrees of
severity and timeframes that are calibrated to the macro-economic environment
and MyState's business model and liquidity risk profileView entire presentation