Regulatory Alerts2013-03-01
Added
Guidelines on Risk Management Practices – Liquidity Risk
The Monetary Authority of Singapore issued these guidelines to establish sound liquidity risk management practices for financial institutions, requiring adherence commensurate with their size and complexity. The document mandates robust governance frameworks, including Board-approved strategies, comprehensive measurement of funding requirements, and the maintenance of high-quality liquid asset cushions. Institutions must also implement contingency funding plans, conduct regular stress testing, and manage foreign currency and asset encumbrance risks to ensure resilience against liquidity crises.
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