Liquidity
Continuity
Engine.
A bank can hold substantial liquid assets and still miss a payment. What matters is not only how much liquidity exists, but where it is, when it arrives, and whether it can be used.
DEADLINE
Liquidity is a timing constraint.
Not just a balance-sheet number.
Standard liquidity measures help describe a bank's resilience, but a security on the balance sheet cannot meet a payment deadline until it has become available funds. A collateral transfer may be delayed; an asset may already be pledged; incoming settlements may arrive after a major outflow. These frictions are especially important under stress, when timing, currency, location and operational access can become binding constraints.
The Liquidity Continuity Engine isolates that problem. It models an hourly funding sequence, reveals the first point at which obligations exceed usable resources, and tests hypothetical safeguards against the same scenario. It is a training and scenario-analysis instrument — never a substitute for an institution's supervisory reports or real treasury systems.
The payment deadline.
Choose a stress mechanism, test the timing assumptions and inspect the exact checkpoint where funding is no longer sufficient.
Accelerated withdrawals create a funding requirement before securities can be mobilised.
The exact hour matters.
Select any checkpoint to audit the cumulative funding position. Amber marks an uncovered obligation; green marks a covered deadline.
Calculating payment checkpoints…
Negative values indicate an illustrative funding gap.
A funding shortfall is a timing condition, not an insolvency forecast.
Assets are not available cash.
The engine prevents encumbered or operationally inaccessible holdings from being treated as immediate funding.
Potentially monetisable collateral
| TIME | IN | FUNDING | WITHDRAWALS | SETTLEMENT | MARGIN | HEADROOM |
|---|---|---|---|---|---|---|
| Calculating locally… | ||||||
Resources entering an hour are assumed usable before that hour's payment checkpoint. The model nets flows within a slot; it does not replicate a real payment queue.
Build a defence. Test the trade-off.
Each safeguard changes a documented assumption. None guarantees access to funding in an actual crisis.
Change in maximum modelled funding gap, with all other scenario parameters held constant.
Explain the mechanism,
not just the number.
Calculating scenario interpretation…
Learn to recognise the hidden constraint.
Three short reasoning cases test whether the user can distinguish balance-sheet assets from accessible funding.
Defend your answer. Understand the assumption. Repeat the decision with new conditions.
Liquidity decision
Which information is relevant?
Select an answer to inspect the mechanism.
Preserve the assumptions.
Export a complete scenario with inputs, interventions, hourly observations, model version and limitations. No signup. No external storage. A shared URL exposes its encoded model inputs to recipients.
An inspectable model.
Explicit limits.
The engine takes inspiration from supervisory liquidity-management concepts. It is not calibrated to the Basel ratios or any individual bank.
Calculation and time convention
At each hourly payment checkpoint, cumulative usable resources equal opening cash plus received inflows plus collateral-funded cash plus any selected committed line. Cumulative obligations consist of deposit withdrawals, settlements and margin calls. Headroom = cumulative usable resources − cumulative obligations. The first negative headroom identifies the first modelled funding gap; the magnitude of the largest negative headroom is the peak uncovered requirement.
The model assumes that an inflow assigned to an hourly slot arrives before the obligations at that slot's checkpoint. It does not simulate real-time gross settlement order, daylight overdraft rules, cross-border settlement cutoffs or individual payment netting restrictions. Those must be analysed separately in real deployments.
Collateral accessibility
Potential repo proceeds = securities book value × (1 − encumbered fraction) × (1 − stress haircut) × repo advance rate. These proceeds appear only at the assumed funding release hour. Securities already pledged, unmonetised haircut value, advance-rate holdbacks and trapped cross-border assets are not counted as immediately usable cash. The facility toggle is explicitly conditional on actual contractual and operational drawability.
These are simplified illustrative collateral assumptions. Real repo transactions involve settlement conventions, valuation, eligibility schedules, collateral concentration, counterparty limits, legal entities, currencies and execution risk.
What this product does not claim
The laboratory uses synthetic data and stylised stress factors. It does not evaluate a named bank, predict insolvency, forecast a bank run, calculate regulatory LCR or NSFR, confirm central-bank facility access, provide an investment recommendation or certify operational resilience. A 30-day liquidity metric cannot establish the ability to settle a particular intraday obligation.
All computation happens locally in the browser. No outside API calls, analytics scripts, accounts, live inputs, or third-party software services are required. Its exports are reproducible educational records, not regulatory filings.
Evidence, not endorsements.
These external links are optional reading references only. The simulation neither fetches their content nor claims endorsement by their authors.
Before contagion, there is a
liquidity decision.
The Liquidity Continuity Engine studies payment resilience inside a synthetic institution. The Chain Reaction examines possible transmission between financial channels. The Central Bank Liquidity Clock provides a separate lens on official settlement windows.