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    Question

    What are the mismatch tolerance levels for time bucket

    of 15 – 28 days  in the ALM statement?
    A 20% of cash out flows Correct Answer Incorrect Answer
    B 25% of cash out flows Correct Answer Incorrect Answer
    C 10% of cash out flows Correct Answer Incorrect Answer
    D 30% of cash out flows Correct Answer Incorrect Answer
    E 50% of cash out flows Correct Answer Incorrect Answer

    Solution

    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.

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