Explanation:

The mismatch report usually comprises of the cumulative liquidity cash flow of both liquidity daily liquidity report and deposit tracker report

B is incorrect: The mismatch report is used to generate the survival horizon report for cashflows. C is incorrect: The bank’s marketable assets and liabilities are presented in a daily liquidity report D is incorrect: The end of day liquidity position is presented in a daily liquidity report.

Things to Remember

Asset Liability Management (ALM) is a strategic management tool to manage interest rate risk and liquidity risk faced by banks and other financial institutions.
Mismatch reports help in identifying any gaps between the maturity profiles of assets and liabilities, which can help in managing liquidity risk.
Liquidity risk is the risk that a bank may not be able to meet its obligations as they come due without incurring unacceptable losses.
Survival horizon reports are used to assess the ability of a bank to survive a stress scenario by analyzing cash flows over a specified time horizon.

Q.4053 MCT bank has been preparing a mismatch report after a stress testing process. Which among the following statements is accurate about mismatch reports?

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Last updated: July 5, 2026 at 07:08

The mismatch report reflects the maturity gap for all assets and liabilities per time bucket and with an adjustment for liquid securities.

The report doesn’t apply in generating the horizon report for cash flow

It presents the bank’s marketable assets and liabilities

It reports the end-of-day liquidity position

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Q.4053 MCT bank has been preparing a mismatch report after a stress testing process. Which among the following statements is accurate about mismatch reports?