Regulatory Alerts2012-11-21
Financial Institutions (Liquidity Risk Management) Regulations, 2009
The Central Bank issued these regulations to mandate comprehensive liquidity risk management for licensed domestic and offshore banks. Banks must maintain liquid assets averaging at least twenty percent of total liabilities, establish a Board-level Risk Management Committee, and implement a written liquidity strategy with clearly defined limits and crisis response plans. Compliance is enforced through weekly liquid asset returns and monthly maturity ladder submissions, with financial penalties imposed for deficiencies.
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