Regulatory Alerts2023-01-01
Revised Liquidity Risk Management Requirements for Banks
The Reserve Bank of Fiji issued Banking Supervision Policy Statement No. 9A to mandate that all licensed commercial banks adopt prudent liquidity risk management practices and maintain adequate liquid assets. The policy requires banks to establish comprehensive governance frameworks where the board sets risk tolerance and senior management implements strategies, including robust stress testing and contingency funding plans. Additionally, banks must utilize specific measurement tools, maintain internal limits, and submit monthly maturity profiles to ensure they can withstand liquidity stress and meet obligations as they fall due.
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