Stress testing / Liquidity and funding risk [42]

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Bullet points include: Ideally incorporate liquidity limit system reflecting bank’s risk appetite with regard to liquidity For open liquidity gaps, define volume limits regarding different maturities Liquidity contingency planning Detailed contingency plans covering responsibilities, data sources, communication guidelines and action plans, for each scenario, to allow firm to react swiftly and effectively to a liquidity stress Liquidity reporting Frequent, comprehensive, timely reporting using reliable up-to-date data Internal transparency, to provide sound basis for management decisions

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