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Board of Governors of the Federal Reserve System
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Board of Governors of the Federal Reserve System

Supervisory Policy and Guidance Topics

Liquidity Risk Management

Liquidity is a financial institutionís capacity to meet its cash and collateral obligations without incurring unacceptable losses. Adequate liquidity is dependent upon the institutionís ability to efficiently meet both expected and unexpected cash flows and collateral needs without adversely affecting either daily operations or the financial condition of the institution. Liquidity risk is the risk to an institutionís financial condition or safety and soundness arising from its inability (whether real or perceived) to meet its contractual obligations. The primary role of liquidity-risk management is to (1) prospectively assess the need for funds to meet obligations and (2) ensure the availability of cash or collateral to fulfill those needs at the appropriate time by coordinating the various sources of funds available to the institution under normal and stressed conditions.
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Policy Letters

Liquidity Risk Management

SR 16-3
Interagency Guidance on Funds Transfer Pricing Related to Funding and Contingent Liquidity Risks
SR 14-3
Supervisory Guidance on Dodd-Frank Act Company-Run Stress Testing for Banking Organizations with Total Consolidated Assets of More Than $10 Billion but Less Than $50 Billion
SR 12-7
Supervisory Guidance on Stress Testing for Banking Organizations with More Than $10 Billion in Total Consolidated Assets
SR 12-2
Questions and Answers on Interagency Advisory on Interest Rate Risk Management
SR 11-7
Guidance on Model Risk Management
SR 10-6
Interagency Policy Statement on Funding and Liquidity Risk Management
SR 10-1
Interagency Advisory on Interest Rate Risk
SR 03-15
Interagency Advisory on the Use of the Federal Reserve's Primary Credit Program in Effective Liquidity Management
SR 01-14 (SUP)
Joint Agency Advisory on Rate-Sensitive Deposits
SR 01-8 (SUP)
Supervisory Guidance on Complex Wholesale Borrowings
SR 97-4 (SUP)
Interagency Guidance on Common Questions About the Application of the Revised CAMELS Rating System
SR 96-38 (SUP)
Uniform Financial Institutions Rating System
SR 96-13 (SUP)
Joint Policy Statement on Interest Rate Risk
SR 95-46 (SPE)
Interpretation of Interagency Statement on Retail Sales of Nondeposit Investment Products
SR 94-49 (IB)
Deposits Held in Foreign Branches of U.S. Banks
SR 90-31
Bank Holding Company Funding from Sweep Accounts
SR 90-3
Foreign (Non-US) Currency Denominated Deposits Offered At Domestic Depository Institutions

Additional Resources


Manual References

Last update: May 11, 2016