A stress testing exercise that a bank conducts on its intraday liquidity (IDL). Depending on the size, business model, payment volumes, and complexity of a supervised entity (a bank), an internally developed stress testing might be required by regulators as a means to analyze the intraday liquidity risk (IDL risk).

Different scenarios for such an internally developed stress testing include 1) own financial stress (e.g., payments delay/ defer, intraday credit lines withdrawal, reduced access to the market, reduction in credit lines availability and limits), 2) counterparty stress (i.e., specific types of stress directly affecting a given counterparty, being unable to transfer incoming payment and hence causing a lower amount of intraday liquidity available, 3) customer bank’s stress (a costumer bank of a corresponding bank may experience a severe stress resulting in deferred payments, and consequently an intraday liquidity shortage, and 4) market-related stress (e.g., at the time of a crisis affecting liquidity flow, global market, emerging markets, local money markets and retail deposits, accompanied with a halt of closure of major funding markets such as covered bond market, securitization market, etc.