A bank’s liquidity risk-management framework should recognize that, even under stress, it may be reluctant to refuse to roll over short-term credit to customers that it would like to retain in the longer run. 17  See www.federalreserve.gov/bankinforeg/large-institution-supervision.htm for a current list of firms in the LISCC portfolio.
Looking ahead, the baseline scenario assumes that Japan’s economy is likely to be on a moderate expanding trend and the annual rate of change in the CPI is expected to revert to an uptrend toward the price stability target of 2 percent. The Bank of Japan recently took further actions to strengthen monetary easing by adding a negative interest rate dimension to QQE.