The Single Resolution Board (SRB) has published operational guidance for measuring and reporting liquidity in resolution on their website on 16 June 2023. The guidance complements principle 3.2 in the SRB Expectations for Banks document. A bank’s ability to measure and report liquidity is an essential part of the bank’s resolvability in resolution.
The guidance focuses on three objectives:
- The ability of banks’ internal frameworks, governance and information systems to meet the expectations in the guidance, including the ability to forecast the net liquidity position across time periods and at short notice;
- Banks’ capability to report a predefined set of data on their liquidity situation;
- The remedial actions banks have put in place to mitigate any deficiencies in their capabilities to provide these data points.
The Financial Stability Authority will apply the expectations described in the guidance to institutions under its direct remit where applicable.
SRBs bulletin on the operational guidance for measuring and reporting liquidity in resolution
Further information: Bank Resolution Expert Maarit Vilen (maarit.vilen(at)rvv.fi)
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