Regulatory Alerts2020-01-31
Liquidity Principles Guideline (2020)
The Office of the Superintendent of Financial Institutions issued this guideline to require federally regulated banks, trust and loan companies, and bank holding companies to implement comprehensive liquidity risk management frameworks. It mandates robust governance structures, clearly defined risk tolerances, and continuous monitoring of funding needs across currencies and legal entities. Institutions must maintain adequate high-quality liquid assets, conduct regular stress tests to identify potential funding shortfalls, and implement effective contingency funding plans to withstand both name-specific and market-wide stress events.
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