WASHINGTON – US regulatory agencies have beefed up their liquidity risk requirements for banks and thrifts, and incorporated principles that bring the American regime more closely into line with guidance issued in 2008 by the Basel Committee. The joint policy statement, issued in late-March, emphasises the importance of cash flow projections, diversified funding sources, stress testing, a cushion of liquid assets, and a formal, well-developed contingency funding plan as primary tools for measuring and managing liquidity risk.
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