Update 2 March 2020
This Supervisory Statement was updated following PS4/20 ‘Liquidity: The PRA’s approach to supervising liquidity and funding risks’. This version takes effect from Monday 2 March 2020.
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.