Field Investigation: Heartland Bank's Liquidity Under a Deposit Run
Overview
What this challenge is about.
Analyze Heartland Bank’s position ledger and deposit flows to compute LCR and NSFR, then model three stress scenarios over 30 days. Earn your verifiable certificate.
The scenario
Heartland Bank is a 150-year-old regional community bank in the U.S. Midwest whose deposit base is concentrated among households and small businesses tied to a single manufacturing economy, making it unusually exposed when that local economy contracts.
The Brief
What you'll do, and what you'll demonstrate.
How can Heartland Bank maintain adequate liquidity through a severe local economic downturn and an active deposit run while minimizing realized losses and meeting regulatory liquidity requirements?
Earning criteria — what you'll demonstrate
- Compute and interpret the Liquidity Coverage Ratio and Net Stable Funding Ratio from position-level bank data
- Derive stress-scenario parameters from observed deposit behavior rather than generic assumptions
- Benchmark a bank's liquidity profile against peers using public regulatory data
- Design a sequenced contingency plan that avoids forced asset sales while satisfying regulatory standards
- Communicate liquidity risk findings clearly enough to withstand examiner scrutiny
Program Fit
Where this fits in your program.
Sharpens the same skills your degree expects you to demonstrate.
Aligned coursework coming soon.
Skills
Skills you'll demonstrate.
Each one shows up on your verified credential.
- Liquidity Risk
Apply liquidity risk to solve real industry problems and demonstrate production-level capability.
- Lcr
Apply lcr to solve real industry problems and demonstrate production-level capability.
- Nsfr
Apply nsfr to solve real industry problems and demonstrate production-level capability.
- Stress Testing
Apply stress testing to solve real industry problems and demonstrate production-level capability.
- Contingency Planning
Apply contingency planning to solve real industry problems and demonstrate production-level capability.
Careers
Career paths this challenge builds toward
Completing this challenge demonstrates skills that transfer directly to these roles:
Treasury Analyst
This challenge mirrors a treasury desk's core work: measuring liquidity coverage, stress-testing funding shocks, and writing contingency plans. You leave able to defend ratio methodology and scenario assumptions to a manager or examiner, the daily reality of bank treasury teams.
This challenge sharpens
- liquidity-risk
- lcr
- stress-testing
Bank Liquidity Risk Manager
Liquidity risk managers own the LCR and NSFR frameworks and the firm's contingency funding plan. By building both ratios from position-level data and parameterizing scenarios from observed flows, you practice exactly the evidence-driven risk governance this role demands.
This challenge sharpens
- liquidity-risk
- nsfr
- contingency-planning
Bank Examiner / Regulatory Analyst
Examiners verify that a bank's liquidity ratios, assumptions, and contingency plans are sound and well documented. Benchmarking against public FDIC peer data and aligning to the Basel standard trains the scrutiny and judgment that regulatory analysts apply in supervision.
This challenge sharpens
- lcr
- nsfr
- stress-testing