Regulatory Alerts2026-07-10
Added
Guidelines on Liquidity Risk Management (Banks)
The Monetary Authority of Singapore issues these guidelines to set expectations for liquidity risk management practices for banks, merchant banks, and finance companies. The document mandates robust governance structures where the board and senior management define risk appetite, strategies, and comprehensive policies to ensure sufficient liquidity under stress. It requires institutions to implement rigorous risk identification, measurement, and monitoring processes, including stress testing and contingency funding plans, while aligning incentives with liquidity costs.
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