Regulatory Alerts2014-02-20
Guideline on the Liquidity Risk Management
The Bank of Mongolia issued Decree No. 239 to approve and enforce the Liquidity Risk Management Guideline, requiring commercial banks to establish robust strategies, internal rules, and crisis recovery plans by August 1, 2008. The regulation mandates that banks develop specific information and monitoring systems to calculate net cash flows, set quantitative limits, and manage liquidity risks across various currencies and stress scenarios. Additionally, banks must implement comprehensive internal control and audit mechanisms to ensure compliance, while foreign bank branches may qualify for exemptions if their liquidity management is fully integrated with their parent bank's centralized system.
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