BCBS Consultative Document on Monitoring Indicators for Intraday Liquidity Management

Ba11ki11g Supervision Dept. From Saudi Arabian Monetary Agency To All Banks Attention : Managing Directors, Chief Executive Officers, General Managers Subject BCBS Consultative Document Entitled "Monitoring Indicators for lntraday Liquidity Management" The BCBS has issued a consultative document entitled "Monitoring Indicators for lntraday Liquidity Management" for comments. The management of intraday liquidity risk forms a key element of a bank's overall liquidity risk management framework and in this regard, the BCBS published its Principles for Sound Liquidity Risk Management and Supervision (Sound Principles) in 2008. This document sets guidelines for banks on their management of liquidity risk and collateral, where its Principle 8 of the Sound Principles focuses specifically on intraday liquidity risk and states that: '� bank should actively manage its intraday liquidity positions and risks to meet payment and settlement obligations on a timely basis under both normal and stressed conditions and thus contribute to the smooth functioning of payment and settlement systems." This consultative document can be obtained from BIS Website: www.bis.org where SAMA seeks comments on this document. All banks are expected to review this document and provide comments by 30 August 2012. �;' I g \ .±ti Abdulrahman A. Al-Kalaf Deputy Governor for Technical Affairs � P. O. Box 2992 - Riyadh 11169, Saudi Arabia - Tel.: 01-463 3000 - Telex 404390 SJ - Fax 01-466 2119