Update on 23 February 2018
This supervisory statement (SS) was updated following publication of PS2/18 ‘Pillar 2 liquidity’.
Update on 12 December 2016
This SS was updated following publication of PS35/16 ‘Responses to CP26/16’.
Published on 8 June 2015
This supervisory statement is relevant to UK banks, building societies and PRA UK-designated investment firms; third-country firms that are banks or designated investment firms; and European Economic Area (EEA) credit institutions that have a branch in the United Kingdom. It sets out the Prudential Regulation Authority’s (PRA’s) approach to supervising liquidity and funding risks, and covers its expectations in relation to:
- the Internal Liquidity Adequacy Assessment Process;
- the Liquidity Supervisory Review and Evaluation Process;
- drawing down Liquid Asset Buffers;
- collateral placed at the Bank of England; and
- daily reporting under stress.