2020-01-01

Liquidity Risk Management Requirements for Credit Institutions

The Reserve Bank of Fiji issues Policy Statement No: 9B to establish minimum liquidity risk management standards for all licensed credit institutions under the Banking Act 1995. The regulation mandates that institutions develop, document, and annually submit a Board-endorsed liquidity risk management policy incorporating specific measurement tools, monitoring frameworks, and contingency plans. Key requirements include maintaining mandatory liquid asset holdings, conducting maturity mismatch and cash flow analyses, establishing an Asset Liability Committee, and ensuring robust internal controls and reporting mechanisms.

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Reserve Bank of Fiji

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