Published Date: 01 March 2013

Liquidity risk is the risk of an institution’s inability to meet its financial obligations as they fall due without incurring unacceptable cost or losses. These guidelines provide financial institutions with guidance on the key principles of, and sound practices for liquidity risk management. 

The guidelines cover:

  • Governance and liquidity strategy.
  • Policies and procedures for sound liquidity risk management.
  • Measurement and management of liquidity risk.
  • Contingency funding plan, stress testing and scenario analysis, foreign currency management and asset encumbrance.