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
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.