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LM-2.5.1

Banks must adopt a cash-flow approach to managing liquidity risk, under which they must have in place a robust framework for projecting comprehensively future cash flows arising from assets, liabilities and OBS items over an appropriate set of time horizons. The framework must be used for:

(a) monitoring on a daily basis their net funding gaps under normal business conditions; and
(b) Conducting regular cash-flow analysis based on a range of stress scenarios.
August 2018