Entire Section

  • Introduction

    • PIB 9 Guidance

      1. This chapter deals with management of Liquidity Risk by an Authorised Firm. Liquidity Risk refers to the risk of potential losses incurred by an Authorised Firm's failure to have liquid assets to ensure payment of all its liabilities as they fall due and be in a position to meet all payments required to sustain its business on a planned growth path.
      2. This chapter requires an Authorised Firm to:
      a. maintain and implement a Liquidity Risk policy;
      b. identify, measure and monitor Liquidity Risk;
      c. maintain a minimum level of High Quality Liquid Assets (HQLA);
      d. determine quantitative limits on cumulative negative maturity mismatch in accordance with a specified methodology; and
      e. maintain a minimum Net Stable Funding Ratio.
      Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]
      [Amended] DFSA RM148/2014 (Made 1st January 2015). [VER23/01-15]
      [Amended] DFSA RM209/2017 (Made 25th October 2017). [VER30/01-18]