1. Liquidity Risk Regulatory Calculations for Reserve Bank of India User Guide
  2. Forward Date Liquidity Risk Calculation
  3. Overview of Forward Date Liquidity Risk Calculation
  4. Adjustment of Forward Balance Sheet

7.1.5 Adjustment of Forward Balance Sheet

After computing the forward balances for all dimensional combinations, the application checks whether the total assets equal the total liabilities plus equity. If the total assets do not equal the total liabilities plus equity, an adjustment entry is made to balance the balance sheet, if specified by the user.

The application supports multiple methods for adjusting the balance sheet. The method to be used is determined through the selection of the balance sheet adjustment method in the Run Management window. Refer section Run Definition Parameters of the OFS Liquidity Risk Measurement and Management User Guide on OHC Documentation Library for more details.

The application supports the following four methods for adjusting the forward balance sheet:

  • Current Profile Based Increase
  • Current Profile Based Decrease
  • Cash Adjustment
  • Manual Adjustments

Note:

The adjustments are applied to forward balances prior to computing forward cash flows as part of the contractual Run.