(3) The senior management must be satisfied that all of the firm’s firm’s business units whose activities affect the liquidity: firm’s (a) are fully aware of the liquidity risk management strategy; firm’s and (b) operate in accordance with the approved policies, firm’s procedures, limits and controls. 9.2.4 Liquidity management strategy (1) A banking business liquidity management strategy must include firm’s specific policies on liquidity management, such as: (a) the composition and maturity of assets and liabilities; (b) the diversity and stability of funding sources; (c) the approach to managing liquidity in different currencies, firm’s across borders, and across business lines and legal entities; and (d) the approach to intraday liquidity management. firm’s (2) The strategy must take account of the liquidity needs both under firm’s normal conditions and during periods of liquidity stress. The strategy must include quantitative and qualitative targets. (3) The strategy must be appropriate for the nature, scale and complexity of the operations. In formulating the strategy, the firm must firm’s consider its legal structure, its key business lines, the breadth and diversity of its markets and products, the jurisdictions in which it operates, and regulatory requirements. (4) The senior management must communicate the following firm’s throughout the firm: (a) the strategy; (b) the key policies for implementing it; firm’s (c) the liquidity management structure. firm’s 9.2.5 Liquidity risk management—processes (1) A banking business firm must have a sound process for identifying, measuring, monitoring and controlling liquidity risk. The process must include a robust framework for comprehensively projecting cashflows arising from assets, liabilities and off-balance-sheet items over an appropriate set of time horizons.
(3) The firm’s senior management must be satisfied that all of the firm’s business units whose activities affect the firm’s liquidity: (a) are fully aware of the firm’s liquidity risk management strategy; and (b) operate in accordance with the firm’s approved policies, procedures, limits and controls. 9.2.4 Liquidity management strategy (1) A banking business firm’s liquidity management strategy must include specific policies on liquidity management, such as: (a) the composition and maturity of assets and liabilities; (b) the diversity and stability of funding sources; (c) the firm’s approach to managing liquidity in different currencies, across borders, and across business lines and legal entities; and (d) the firm’s approach to intraday liquidity management. (2) The strategy must take account of the firm’s liquidity needs both under normal conditions and during periods of liquidity stress. The strategy must include quantitative and qualitative targets. (3) The strategy must be appropriate for the nature, scale and complexity of the firm’s operations. In formulating the strategy, the firm must consider its legal structure, its key business lines, the breadth and diversity of its markets and products, the jurisdictions in which it operates, and regulatory requirements. (4) The firm’s senior management must communicate the following throughout the firm: (a) the strategy; (b) the firm’s key policies for implementing it; (c) the firm’s liquidity management structure. 9.2.5 Liquidity risk management—processes (1) A banking business firm must have a sound process for identifying, measuring, monitoring and controlling liquidity risk. The process must include a robust framework for comprehensively projecting cashflows arising from assets, liabilities and off-balance-sheet items over an appropriate set of time horizons.
QFCRA_9582_VER5.docx