Regulatory Alerts2024-02-12
Determination on Liquidity Risk Management for Domestic Systemically Important Banks
The Bank of Namibia has issued a new determination mandating comprehensive liquidity risk management frameworks for all domestic systemically important banks (DSIBs). DSIBs must maintain adequate high-quality liquid assets to satisfy the Liquidity Coverage Ratio and Net Stable Funding Ratio, while ensuring robust board governance, quarterly stress testing, and effective contingency funding plans. Effective 31 March 2024, this regulation supersedes prior liquidity rules for DSIBs and enforces strict reporting standards, intraday liquidity management, and alternative compliance pathways to safeguard financial stability.
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