CLAR involves evaluations of firms’ liquidity positions both through a range of supervisory liquidity metrics and through analysis of firms’ internal stress tests. A variety of liquidity indicators, such as funding concentrations, measure vulnerabilities beyond those captured in the LCR; the measurements are made over a number of time horizons.
In terms of the relationship between Germany and Japan, the Bank of Japan established a representative office in Frankfurt in 1956. Making the most of the representative offices in each other’s countries, the Deutsche Bundesbank and the Bank of Japan have always enjoyed the timely, candid, and fruitful exchange of information and views, notwithstanding the geographical distance between the two countries.