Overall Liquidity Adequacy Rule: Difference between revisions
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imported>Doug Williamson (Mend link.) |
imported>Doug Williamson (Mend link.) |
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== See also == | == See also == | ||
* [[Bank supervision]] | * [[Bank supervision]] | ||
* [[ | * [[High Quality Liquid Assets]] (HQLAs) | ||
* [[ILAA]] | * [[ILAA]] | ||
* [[Internal Liquidity Adequacy Assessment Process]] (ILAAP) | * [[Internal Liquidity Adequacy Assessment Process]] (ILAAP) | ||
Revision as of 11:42, 25 June 2022
Bank supervision - liquidity risk
(OLAR).
The Overall Liquidity Adequacy Rule (OLAR) states that a regulated firm must at all times maintain liquidity resources which are adequate, both as to amount and quality, to ensure that there is no significant risk that its liabilities cannot be met as they fall due.
The following are expressly excluded from the 'liquidity resources' assessed under the OLAR:
- Liquidity resources that can be made available by other members of its group.
- Liquidity resources that may be made available through emergency liquidity assistance from a central bank.
