Central Bank of Bahamas Consults on Liquidity Reforms Under Basel III
The Central Bank of Bahamas proposed to implement liquidity coverage ratio (LCR) and net stable funding ratio (NSFR) in Bahamas. As part of the consultation process, the Central Bank of Bahamas also published a Liquidity QIS Template. The consultation period will run from December 27, 2018 to February 28, 2019.
The discussion paper outlines the approach of the Central Bank of Bahamas for implementing the LCR and NSFR frameworks. The proposals detail:
- What will qualify as High Quality Liquid Assets (HQLA)
- The calculation and requirements for LCR and NSFR
- The approach to implementing enhanced liquidity monitoring tools
The liquidity rules introduced by BCBS provide supervised financial institutions with a credible and comprehensive framework for managing liquidity risks in their day-to-day operations. They allow bank supervisors to monitor liquidity risks in a timely and more effective manner. Although the Basel standard is intended for much more complex banking systems and capital markets, the proposed Bahamian liquidity standards will be much simpler and less costly to comply with. This is in keeping with the Central Bank of Bahamas' intent to develop prudential policies and regulations that balance safety, efficiency, and competitiveness in the Bahamian banking system, while promoting financial system stability.
Related Links
Comment Due Date: February 28, 2019
Keywords: Americas, Bahamas, Banking, Basel III, LCR, NSFR, Liquidity Monitoring Tools, Liquidity Risk, BCBS, Central Bank of Bahamas
Featured Experts
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Pierre-Etienne Chabanel
Brings expertise in technology and software solutions around banking regulation, whether deployed on-premises or in the cloud.
Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.
Previous Article
HKMA Announces Intention to Consult on Updated BCBS Disclosure RulesRelated Articles
BIS Examines Use of Big Data and Machine Learning at Central Banks
BIS published a paper that provides an overview on the use of big data and machine learning in the central bank community.
APRA Finalizes Reporting Standard for Operational Risk Requirements
APRA finalized the reporting standard ARS 115.0 on capital adequacy with respect to the standardized measurement approach to operational risk for authorized deposit-taking institutions in Australia.
ECB Publishes Guide for Determining Penalties for Regulatory Breaches
ECB published a guide that outlines the principles and methods for calculating the penalties for regulatory breaches of prudential requirements by banks.
MAS Sets Out Good Practices to Manage Operational Risks Amid COVID
MAS and The Association of Banks in Singapore (ABS) jointly issued a paper that sets out good practices for the management of operational and other risks stemming from new work arrangements adopted by financial institutions amid the COVID-19 pandemic.
ACPR Announces New Data Collection Application for Banks and Insurers
ACPR announced that a new data collection application, called DLPP (Datalake for Prudential), for collecting banking and insurance prudential data will go into production on April 12, 2021.
BCB Maintains CCyB at 0%, Initiates First Cycle of Regulatory Sandbox
BCB announced that the Financial Stability Committee decided to maintain the countercyclical capital buffer (CCyB) for Brazil at 0%, at least until the end of 2021.
EIOPA Launches Study on Non-Life Underwriting Risk in Internal Models
EIOPA has launched a European-wide comparative study on non-life underwriting risk in internal models, also kicking-off of the data collection phase.
SRB Publishes Overview of Resolution Tools Available in Banking Union
SRB published an overview of the resolution tools available in the Banking Union and their impact on a bank’s ability to maintain continuity of access to financial market infrastructure services in resolution.
EBA Consults on Pillar 3 Disclosure Standards for ESG Risks Under CRR
EBA is consulting on the implementing technical standards for Pillar 3 disclosures on environmental, social, and governance (ESG) risks, as set out in requirements under Article 449a of the Capital Requirements Regulation (CRR).
ESAs Issue Advice on KPIs on Sustainability for Nonfinancial Reporting
ESAs Issue Advice on KPIs on Sustainability for Nonfinancial Reporting
