Principles for Sound Liquidity Risk Management and Supervision

17.06.08 - 10:31 ... source : Bank for International Settlements (BIS)

... ."The Basel Committee's goal in developing these global standards is to significantly raise the bar for the management and supervision of liquidity risk at banks" stated Nout Wellink, Chairman of the Basel Committee and President of the Netherlands Bank. "The Committee fully expects banks and supervisors to implement the enhanced principles promptly and thoroughly. We will vigorously assess the degree to which the principles are implemented." The principles support one of the key recommendations for strengthening prudential oversight set out in the Report of the Financial Stability Forum on Enhancing Market and Institutional Resilience, which was presented to G7 Finance Ministers and Central Bank Governors in April 2008. The draft principles represent a substantial revision of the Committee's liquidity guidance that was published in 2000 and reflect the lessons of the financial market turmoil. The work was ...» Next (HTML)