Creditor Information
Liquidity and Funding Risk

Liquidity is of critical importance to companies in the financial services sector. Most failures of financial institutions have occurred in large part due to insufficient liquidity.

Accordingly, Goldman Sachs has in place a comprehensive set of liquidity and funding policies that are intended to maintain significant flexibility to address both Goldman Sachs-specific and broader industry or market liquidity events. Our principal objective is to be able to fund Goldman Sachs and to enable our core businesses to continue to generate revenues, even under adverse circumstances.

We manage liquidity risk according to the following framework:

Global Core Liquid Assets [PDF, 889 KB - page 130 ] – We maintain substantial liquidity to meet a broad range of potential  cash outflows in a stressed environment, including financing obligations. The amount of our Global Core Liquid Assets is based on an internal liquidity model together with a qualitative assessment of the condition of the financial markets and of Goldman Sachs.

Asset-Liability Management [PDF, 889 KB - page 130] – Our funding strategy includes an assessment of the overall  characteristics of our assets with respect to their anticipated holding periods and potential illiquidity in a stressed environment. In addition, we manage the maturities and diversity of our secured and unsecured funding liabilities across markets, products and counterparties, and we seek to maintain liabilities of appropriate term relative to our asset base.

Contingency Funding Plan (CFP) [PDF, 889 KB - page 131] – We maintain a CFP to help identify, measure, monitor and mitigate liquidity and funding risk. The CFP considers various risk factors that could occur during a crisis and provides a framework for analyzing and responding to a liquidity crisis.

For additional information on Liquidity Risk Management, please see our most current Form 10-Q.