Sound practices for managing liquidity in banking organisations

Liquidity
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also want to consider implementing regulatory requirements for certain liquidity limits or
ratios.
93.
An essential aspect of a sound liquidity risk management process is an effective
system of internal controls. In this regard, supervisors should review the internal control
process to ensure that regular independent reviews are being conducted and that appropriate
and timely revisions to internal controls are made.
94.
Supervisors should also have their own contingency plans for dealing with
liquidity problems at individual banks or in the market as a whole. In order to carry out their
contingency plans effectively, supervisors will need to obtain timely and accurate information
from banks in a crisis. A bank should contact its supervisors (home and host) and the central
bank as soon as it becomes aware of emerging liquidity problems.

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Liquidity
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