Regulatory Alerts2025-03-24 | 34561Added · Updated
Consultation on Draft Guideline on the Management of Liquidity Risk for Insurers and Liquidity Risk Return
The Central Bank of Trinidad and Tobago has developed a draft Guideline on the Management of Liquidity Risk for Insurers and a draft Liquidity Risk Return for insurance companies and financial holding companies registered under the Insurance Act, 2018. The Guideline outlines minimum requirements for a robust liquidity risk management framework, covering board oversight, risk identification, stress testing, and contingency planning, and establishes the assessment framework for liquidity adequacy under section 82(1)(b) of the Act. The Liquidity Risk Return introduces two metrics, the Insurance Liquidity Ratio and the Liquidity Excess/(Gap), for measuring and monitoring liquidity risk under normal and stressed scenarios. Stakeholders must submit feedback on these draft documents by May 23, 2025.
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