2021-09-03 | BSD/DIR/PUB/14/063

Guidelines on Liquidity Risk Management and Internal Liquidity Adequacy Assessment Process (ILAAP)

The Central Bank of Nigeria (CBN) has issued guidelines for liquidity risk management and internal liquidity adequacy assessment (ILAAP) to ensure banks maintain sufficient liquidity and manage funding risks effectively. Banks must identify, manage, and cover material liquidity risks with sufficient high-quality liquidity buffers. The ILAAP, updated quarterly, ensures banks assess and demonstrate adequate liquidity and prudent funding profiles. CBN's supervision considers the nature, scale, and complexity of bank activities. Banks must submit ILAAP reports bi-annually and publicly disclose relevant quantitative and qualitative information annually.

Nigeria

Central Bank of Nigeria

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