Regulatory Alerts2012-11-29
Regulation on Liquidity Risk Management
The Central Bank of the Republic of Kosovo issued this regulation to establish minimum standards and operational requirements for managing liquidity risk across all licensed domestic and foreign banks. The directive mandates the implementation of a comprehensive liquidity risk management system encompassing defined strategies, organizational responsibilities, internal controls, and continuous stress testing. Banks are required to continuously forecast cash inflows and outflows, monitor funding concentrations and collateral adequacy, maintain prescribed liquidity ratios, and execute contingency plans to mitigate shortfalls during both normal and stressed market conditions.
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