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Liquidity risk: monitoring, reporting and managing
by jstrange on Feb 4, 2011
Global regulatory regimes
The events of the last couple of years have highlighted just how inadequate existing liquidity management, measurement and reporting regimes have been. As a result of this, international regulatory bodies such as the Bank of International Settlements (BIS) and the Committee of European Banking Supervisors (CEBS) moved liquidity risk management and supervision higher up the global regulatory agenda and significant changes to existing liquidity regimes are underway.
The UK’s FSA enforced the first set of rules and strict deadlines set out in its Policy Statement ‘Strengthening capital standards’ (PS 09/16), but now more and more countries are following suit. (For further details of the UK liquidity requirements please visit out UK liquidity page.)
To effectively manage what is required, a robust liquidity risk management framework (i.e. strategy, policy and practices) that ensures sufficient liquidity has to be established. This...Read More >>
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