Liquidity risk-management requirements.

CFR · 2024-01-01 · US · Title 12

(a) (i) Approve the acceptable level of liquidity risk that the bank holding company may assume in connection with its operating strategies (liquidity risk tolerance) at least annually, taking into account the bank holding company's capital structure, risk profile, complexity, activities, and size; and (ii) Receive and review at least semi-annually information provided by senior management to determine whether (2) (b) (c) (ii) Senior management must oversee the development and implementation of liquidity risk measurement and reporting systems, including those required by this section and § 252.35. (iii) Senior management must determine at least quarterly whether the bank holding company is operating in accordance with such policies and procedures and whether the bank holding company is in compliance with this section and § 252.35 (or more often, if changes in market conditions or the liquidity position, risk profile, or financial condition warrant), and establish procedures regarding the preparation of such information. (2) (3) (ii) Senior management must review at least annually significant business lines and products to determine whether any line or product creates or has created any unanticipated liquidity risk, and to determine whether the liquidity risk of each strategy or product is within the company's established liquidity risk tolerance. (4) (5) (6) (i) Approve the liquidity stress testing practices, methodologies, and assumptions required in § 252.35(a) at least qua

official document · source cfr-2024 · id 12:§ 252.34