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  • Executive Summary

    • LM-A.1.1

      This Module sets out the CBB's requirements with regards to management of liquidity risk by banks.

      August 2018

    • LM-A.1.2

      Liquidity is the ability of a bank to fund increases in assets and meet obligations as they fall due, without incurring unacceptable losses. Virtually every financial transaction or commitment has implications for a bank's liquidity. Effective liquidity risk management helps ensure a bank's ability to meet cash flow obligations. Liquidity risk management is of paramount importance because a liquidity shortfall at a single institution can have system-wide repercussions.

      August 2018

    • LM-A.1.3

      This Module outlines a set of principles covering the following topics:

      (a) Governance of liquidity risk management;
      (b) Liquidity risk identification, measurement, monitoring and control;
      (c) Foreign currency liquidity management;
      (d) Funding diversification and market access;
      (e) Maintenance of liquidity cushion;
      (f) Intragroup liquidity management;
      (g) Intraday liquidity risk management;
      (h) Collateral management;
      (i) Stress testing and scenario analysis; and
      (j) Contingency Funding Plan.
      August 2018