8.3.1.1 Withdrawal of Credit Lines

This assumption is a specific case when a bank is under financial stress, counterparties and correspondent banks may withdraw intraday credit lines, thus reducing the intraday liquidity available to the bank. The direct impacts of this assumption is on non-committed credit lines; since they can be withdrawn completely.

This withdrawal of Credit Lines is expected at the start of the day. When credit lines are withdrawn, the available intraday liquidity at the start of the day reduces by the same extent.

The metric which impacts due to this effect is ‘Available Intraday Liquidity at the start of the business day’ are:

• Central Bank reserves
• Collateral pledged at central bank
• Collateral pledged at ancillary systems
• Unencumbered liquid assets on the balance sheet
• Total credit lines available
• Of which secured
• Of which committed
• Balances with other banks
• Other

In this assumption, the depending on the dimension selected, the intraday credit lines are reduced by the extent of the withdrawal.