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Intraday liquidity can be defined as funds that are accessible during the business day, usually to enable financial institutions to make payments in real time. The proposed indicators published today will allow banking supervisors to monitor a bank's intraday liquidity risk management and its ability to promptly meet payment and settlement obligations, both in normal times and in stressed scenarios. Over time, the indicators will also help supervisors gain a better understanding of banks' payment and settlement behaviour and their management of intraday liquidity risk.
A proposed monitoring framework is set out in the consultative paper and includes:
Use of the proposed indicators will complement the guidance on intraday liquidity risk management set out in the Basel Committee's 2008 Principles for Sound Liquidity Risk Management and Supervision.
The Basel Committee welcomes comments on this consultative document. Comments should be submitted by Friday 14 September 2012.