BANK 9.2.3 Liquidity risk management — oversight

(1) A banking business firm's liquidity risk management oversight function must be operationally independent. It must be staffed with personnel who have the skills and authority to challenge the firm's treasury and other liquidity management functions.
(2) The firm must have adequate policies, procedures and controls to ensure that the firm's governing body and senior management are informed immediately of new and emerging liquidity concerns.

Those concerns could include:
•   increasing funding costs or concentrations
•   increases in funding requirements
•   shortage of other sources of liquidity
•   material or persistent breaches of limits
•   significant decline in the firm's holdings of unencumbered liquid assets
•   changes in market conditions that could signal future difficulties.
(3) The firm's senior management must be satisfied that all of the firm's business units whose activities affect the firm's liquidity:
(a) are fully aware of the firm's liquidity risk management strategy; and
(b) operate in accordance with the firm's approved policies, procedures, limits and controls.
Inserted by QFCRA RM/2018-1 (as from 1st May 2018).