Navigation and service

Deutsche Bundesbank (Link to homepage)

Notice on liquidity

Notice on the authorisation of a bank's internal liquidity measurement and management procedure, pursuant to section 10 of the Liquidity Regulation

The Liquidity Regulation modernises the quantitative liquidity rules by creating a more risk-oriented and principles-based supervisory regime. Since the beginning of this year, section 10 of the Liquidity Regulation ("liberalisation clause") has, for the first time, given institutions the option of using – subject to prior approval by supervisors – their own risk measurement and management systems for prudential purposes to mitigate liquidity risk. Such an internal procedure must fulfil stringent requirements, compliance with which is assessed by supervisors in an approval examination. Compliance with the requirements for using a liquidity risk measurement and management system can also be assessed at the level of a group of institutions or a financial holding group.

On this internet page you will find a notice with detailed explanations on the application and authorisation procedure as well as guidance on the necessary documentation.