Featured Product

    BCBS Finds Liquidity Risk Management Principles Remain Fit for Purpose

    January 17, 2019

    BCBS completed a review of its 2008 Principles for sound liquidity risk management and supervision. The review confirmed that the principles remain fit for purpose. The principles underscore the importance, for banks, of establishing a robust liquidity risk management framework.

    As implementation of all its standards and guidelines is a high priority for the Committee, a review of these principles was initiated in 2017. The review also covered liquidity-risk-related developments in financial markets since 2008. Based on information provided by each Basel Committee-member jurisdiction, the review concluded that:

    • All Committee member jurisdictions have implemented the Sound Principles through regulation, published guidance, or supervisory practice.
    • The global liquidity standards introduced under Basel III—the Liquidity Coverage Ratio and Net Stable Funding Ratio—are important complements to the principles for liquidity risk management. As such, banks and supervisors should continue to heed the broader liquidity risk management considerations set out in the principles.
    • Significant developments in financial markets since the principles for liquidity risk management were published in 2008 are likely to have an important bearing on liquidity risk management considerations of a bank. These developments include the increasing digitization of finance and payment systems and the broader growth of financial technology; a greater use of central clearing of derivatives and margining; and the increasing risk and magnitude of cyber-attacks.

    The Basel Committee advises banks and supervisors to remain vigilant in their liquidity risk management. In line with the principles for liquidity risk management, banks' risk management and supervisors' practices should be consistently and rigorously applied through the economic cycle, regardless of market liquidity conditions.

     

    Related Links

    Keywords: International, Banking, Basel III, Liquidity Risk, Principles for Liquidity Risk Management, BCBS

    Featured Experts
    Related Articles
    News

    OCC Revises Minimum Threshold for Banks to Conduct Stress Tests

    OCC issued the final rule that amends its company-run stress testing requirements under the 12 CFR 46 in Code of Federal Regulations.

    October 10, 2019 WebPage Regulatory News
    News

    US Agencies Update Management Interlock Rules Under DIMIA

    US Agencies (FDIC, FED, and OCC) issued a final rule that increases the thresholds in the major assets prohibition for management interlocks for purposes of the Depository Institution Management Interlocks Act (DIMIA).

    October 10, 2019 WebPage Regulatory News
    News

    US Agencies Finalize Rules to Closely Match Bank Risk Profiles

    US Agencies (OCC, FED, and FDIC) finalized rules that tailor the regulations for domestic and foreign banks to more closely match their risk profiles.

    October 10, 2019 WebPage Regulatory News
    News

    CPMI-IOSCO and FSB on Governance Arrangements for OTC Derivatives

    CPMI and IOSCO published a report that identifies key criteria, functions, and bodies for the governance arrangements.

    October 09, 2019 WebPage Regulatory News
    News

    EIOPA Launches Field Test on Templates Under 2020 Solvency II Review

    EIOPA, as part of the 2020 Solvency II reporting and disclosure review, launched a field test on the revised and newly proposed reporting templates.

    October 09, 2019 WebPage Regulatory News
    News

    US Agencies Adopt Rule on Appraisals for Real Estate Transactions

    US Agencies (FDIC, FED, and OCC) adopted the final rule to amend regulations requiring appraisals of real estate for certain transactions

    October 08, 2019 WebPage Regulatory News
    News

    US Agencies Finalize Amendments to Simplify Volcker Rule

    US Agencies (CFTC, FDIC, FED, OCC, and SEC) finalized amendments to the regulations implementing section 13 of the Bank Holding Company Act, also known as the Volcker Rule.

    October 08, 2019 WebPage Regulatory News
    News

    EC Report Explores Application and Challenges of Blockchain Technology

    The Joint Research Center of EC published a report exploring the challenges and impact of distributed ledger technologies.

    October 08, 2019 WebPage Regulatory News
    News

    BIS and SNB Sign Agreement on Innovation Hub Center in Switzerland

    BIS and SNB signed an operational agreement on the BIS Innovation Hub Center in Switzerland.

    October 08, 2019 WebPage Regulatory News
    News

    ECB Issues Results of Sensitivity Analysis of Liquidity Risk for Banks

    ECB published results of 2019 stress test on sensitivity analysis of liquidity risk.

    October 07, 2019 WebPage Regulatory News
    RESULTS 1 - 10 OF 3958