CBI Notifies Liquidity Risk Regulations

The directive obliges financial institutions to regularly monitor liquidity risk and sets out fundamentals and defines corporate structures on how to manage liquidity risk. It also devises internal regulations for credit institutions and calls on them to establish a database with the aim of evaluating, supervising and controlling liquidity risk. Through the directive, the central bank also mandates credit institutions to especially consider managing liquidity risk of “important currencies”, obligates them to report each month and threatens disciplinary action in case of violation, according to Financial Tribune.