Regulatory Alerts2009-10-12
Liquidity Management - Prudential Guideline No. 6
The Central Bank of Solomon Islands issued Prudential Guideline No. 6 to establish liquidity supervision standards for all licensed financial institutions. The guideline mandates the maintenance of minimum liquid asset ratios, strict limits on maturity mismatches, and diversified liability structures to ensure institutions can withstand sudden funding demands. It further requires board-approved contingency plans for name crises and imposes enforcement measures, including management replacement, for non-compliance.
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