OLAR

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Bank supervision - liquidity risk.

Overall Liquidity Adequacy Rule.


The 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.


See also