BNM issues policy document on Liquidity Risk

23 January 2025

On 15 October 2024, BNM issued a policy document on Liquidity Risk, which will take effect from 15 October 2025, save for paragraph 18.5 which came into effect on 1 January 2025. The policy document sets out the requirements and guidance on the management of liquidity risk and is aimed at ensuring that financial institutions effectively evaluate their liquidity exposure and implement necessary strategies to meet their liquidity demand. The requirements and guidance are intended to complement the existing regulations on the liquidity coverage ratio and the net stable funding ratio, which define the minimum liquidity standards required by regulators.