Regulatory Alerts2022-05-05
ECCB Guidelines on Liquidity Risk Management for Licensed Banking Institutions
The Eastern Caribbean Central Bank issued these prudential guidelines to establish minimum standards for licensed financial institutions to identify, measure, monitor, and manage liquidity risk. Institutions must implement a comprehensive liquidity management policy supported by board oversight, asset/liability committee functions, and robust internal controls to ensure adequate funding sources and cash flow matching. The guidelines mandate quarterly reporting of risk committee minutes and policy updates to the regulator, alongside documented contingency plans for liquidity crises, with full effect from May 15, 2006.
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