Summary: | The federal banking agencies and the National Credit Union Administration (collectively, the agencies) recently issued guidance to provide sound practices for managing funding and liquidity risk and strengthening liquidity risk management practices. The policy statement emphasizes the importance of cash flow projections, diversified funding sources, stress testing, a cushion of liquid assets and a formal, well-developed contingency funding plan as primary tools for measuring and managing liquidity risk. The agencies expect each financial institution to manage funding and liquidity risk using processes and systems that are commensurate with the institution's complexity, risk profile and scope of operations. |
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Distribution: Suggested Routing: Referenced Guidance:
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Additional Related Topics:
- Interagency Guidance
FIL-13-2010