Regulatory Alerts2018-02-28
Proposed Liquidity Risk Management Module (LM) Volumes 1 and 2
The Central Bank of Bahrain issues this consultation to finalize the Liquidity Risk Management Module, mandating standardized calculations for the Liquidity Coverage Ratio and Net Stable Funding Ratio across standalone and consolidated banking entities. The framework adjusts run-off rates and available stable funding factors to reflect regional deposit behaviors, aligns reporting deadlines for monthly LCR and quarterly NSFR submissions, and clarifies intraday liquidity monitoring and stress testing requirements. By accommodating GCC market characteristics while maintaining Basel III alignment, the module ensures proportional implementation for commercial banks and foreign branches through tailored IT system enhancements and consistent terminology.