Just out from the regulator, a whole new approach to liquidity risk management. Quick headlines:
· a new, quantitative framework for liquidity risk management which places greater emphasis on firms’ ability to assess liquidity risks and develop policies to tackle them;
· a strengthened qualitative framework for liquidity risk management, with an increased focus on firms’ stress testing and contingency funding plans;
· new liquidity reporting requirements; and
· a new approach to firms operating in the UK which are part of a wider UK or international group.
