Regulatory Alerts2012-03-22
Supervisor of Banks: Liquidity Risk Management
The Supervisor of Banks issued this directive to establish comprehensive principles for the management, monitoring, and control of liquidity risk within Israeli banking corporations. The regulation mandates that banks maintain a minimum liquidity ratio of at least 1, calculated against net expected cash outflows over a one-month stress scenario, while also requiring a stable funding ratio and robust internal governance structures. It further specifies detailed requirements for liquidity cushions, intraday liquidity management, consolidated group oversight, and specific exemptions for foreign bank branches.
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