Regulatory Alerts2018-04-12
Agreement No. 4 (2018) Modifying Article 35 of Agreement No. 002-2018 on Liquidity Risk Management and Short-Term Liquidity Coverage Ratio
The Superintendency of Banks of Panama issued Agreement No. 4 (2018) to modify Article 35 of the foundational liquidity regulation, establishing specific requirements for the Short-Term Liquidity Coverage Ratio (LCR). This amendment mandates that banks maintain a sufficient stock of high-quality liquid assets to survive a significant stress scenario lasting 30 days, aligning national standards with Basel Committee recommendations. The regulation requires banks to integrate LCR metrics into their liquidity risk management frameworks, ensuring robust monitoring, stress testing, and reporting to maintain financial stability.
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