RegionsEEABasel Committee Issues Consultative Document on Intraday Liquidity Management

Basel Committee Issues Consultative Document on Intraday Liquidity Management

The Basel Committee on Banking Supervision has issued a consultative document entitled ‘Monitoring Indicators for Intraday Liquidity Management’ and invited comments by Friday 14 September 2012.

The Committee defines ‘intraday liquidity’ as funds that are accessible during the business day, usually to enable financial institutions to make payments in real time. It says that the proposed indicators will allow banking supervisors to monitor a bank’s intraday liquidity risk management and its ability to promptly meet payment and settlement obligations, both in normal times and in stressed scenarios. Over time, the indicators will also help supervisors gain a better understanding of banks’ payment and settlement behaviour and their management of intraday liquidity risk.

A proposed monitoring framework is set out in the consultative paper and includes:

  • The detailed design of the monitoring indicators for a bank’s intraday liquidity risk.
  • Stress scenarios.
  • Key application issues.
  • The reporting regime.

The Committee says that use of the proposed indicators will complicate the guidance in intraday liquidity risk management set out in its 2008 publication ‘Principles for Sound Liquidity Risk Management and Supervision’.

Related Articles

“Destroy or democratise” – how Open Banking will impact connectivity

Banking “Destroy or democratise” – how Open Banking will impact connectivity

3m Victoria Beckett
Treasury TV: Yeng Butler compares US and European MMF reforms

Compliance Treasury TV: Yeng Butler compares US and European MMF reforms

3m Victoria Beckett
Money market reforms: Navigating LVNAV, CNAV and VNAV

EEA Money market reforms: Navigating LVNAV, CNAV and VNAV

4m Victoria Beckett
The Challenge of Building and Maintaining a Central Treasury Operation in a Decentralized Company

EEA The Challenge of Building and Maintaining a Central Treasury Operation in a Decentralized Company

4m BELLIN
The Treasury Challenge of a Post-Merger Integration

EEA The Treasury Challenge of a Post-Merger Integration

4m BELLIN
The Challenge of Integrating Worldwide Subsidiaries into one TMS

Baltics The Challenge of Integrating Worldwide Subsidiaries into one TMS

4m BELLIN
Q&A with BMG's treasury : BELLIN - We Love Treasury 2

EEA Q&A with BMG's treasury : BELLIN - We Love Treasury 2

4m BELLIN
PSD2: dull name, but seismic effect

Clearing & Settlement PSD2: dull name, but seismic effect

4m Alex Kwiatkowski