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BankNet
More resources for national banks

Liquidity

Liquidity is the risk to a bank's earnings and capital arising from its inability to timely meet obligations when they come due without incurring unacceptable losses. Bank management must ensure that sufficient funds are available at a reasonable cost to meet potential demands from both funds providers and borrowers.

Learn More

Liquidity (Comptroller's Handbook, June 2012)

References
AL=Advisory Letter
OCC=Bulletin

Liquidity: Final Interagency Policy Statement on Funding and Liquidity Risk Management (OCC 2010-13, March 2010)
The Final Policy Statement summarizes the principles of sound liquidity risk management.

Liquidity Risk Management (OCC 2003-36, August 2003)
Provides an overview of Interagency Advisory on the Use of the Federal Reserve's Primary Credit Program in Effective Liquidity Management.

Brokered and Rate Sensitive Deposits  (AL 2001-5, May 2001)
An overview of the guidance for banks on the risk management processes for brokered and other highly rate- sensitive deposits covered in detail in Joint Agency Advisory on Brokered and Rate Sensitive Deposits.

Risk Modeling (OCC 2000-16, May 2000)
Guidance to help financial institutions mitigate potential risks arising from reliance on improperly validated computer-based financial models.

International Framework for Liquidity Risk Measurement, Standards and Monitoring - Consultative Document (Bank for International Settlement, December 2009)
Proposals to strengthen global capital and liquidity regulations with the goal of promoting a more resilient banking sector, issued by the Basel Committee on Banking Supervision

Principles for Sound Liquidity Risk Management and Supervision (Bank for International Settlement, September 2008)
Augmented guidance for supervisors that emphasizes the importance of assessing the adequacy of a bank's liquidity risk management framework and its level of liquidity, and suggests steps that supervisors should take if these are deemed inadequate.

Interagency Policy on Banks/Thrifts Providing Financial Support to Funds Advised by the Banking Organization or Its Affiliates (OCC 2004-2, January 2004)
Covers issues and risks related to banks providing financial support to investment funds.

Brokered Deposits (Code of the Federal Regulations 12 CFR 337.6)
Covers applicable definitions and provides an overview of unsafe and unsound banking practices. This link takes you to the Federal Register Web site.


Related News and Issuances
Publish DateIdentifierTitle
06/08/2012  OCC 2012-17, Liquidity: Comptroller's Handbook Revisions and Rescissions
03/22/2010  OCC 2010-13, Description: Final Interagency Policy Statement on Funding and Liquidity Risk Management
06/30/2009  NR 2009-78, Agencies Seek Comment on Proposed Interagency