Framework on monitoring tools for intraday liquidity management issued by the Basel Committee
The Basel Committee on Banking Supervision, in consultation with the Committee on Payment and Settlement Systems, today issued its final version of the document Monitoring tools for intraday liquidity management.
Today's publication introduces a new reporting framework that will enable banking supervisors to better monitor a bank's management of intraday liquidity risk and its ability to meet payment and settlement obligations on a timely basis. Over time, the tools will also provide supervisors with a better understanding of banks' payment and settlement behaviour.
The framework includes:
- the detailed design of the monitoring tools for a bank's intraday liquidity risk;
- stress scenarios;
- key application issues; and
- the reporting regime.
The set of seven quantitative monitoring tools will complement the qualitative guidance on intraday liquidity management set out in the Basel Committee's 2008 Principles for Sound Liquidity Risk Management and Supervision.
An earlier version of the intraday liquidity monitoring tools published today was issued for consultation in July 2012. The Committee wishes to thank those who provided feedback and comments as these were instrumental in revising and finalising the monitoring tools.