Overall Liquidity Adequacy Rule and Penalty: Difference between pages

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''Bank supervision - liquidity risk''
Penalties are generally designed to punish, or discourage, particular behaviour (or omissions).


(OLAR).
In the finance context, penalties are usually money amounts.


The Overall Liquidity Adequacy Rule (OLAR) states that a regulated firm must at all times maintain liquidity resources which are adequate, both as to amount and quality, to ensure that there is no significant risk that its liabilities cannot be met as they fall due.
Examples include tax penalties, penalty charges for late payment of debts, and loss of interest for early withdrawal of a fixed time deposit.




The following are expressly excluded from the 'liquidity resources' assessed under the OLAR:
==See also==


*Liquidity resources that can be made available by other members of its group.
*[[Default surcharge]]
*Liquidity resources that may be made available through emergency liquidity assistance from a central bank.
*[[Payables management]]
 
*[[Time deposit account]]
 
== See also ==
* [[Bank supervision]]
* [[High Quality Liquid Assets]]  (HQLAs)
* [[ILAA]]
* [[Internal Liquidity Adequacy Assessment Process]]  (ILAAP)
* [[Liquidity]]
* [[Liquidity buffer]]
* [[Liquidity Coverage Ratio]]
* [[Maturity mismatch]]
* [[Net Stable Funding Ratio]]
* [[Supervisory Review and Evaluation Process]]  (SREP)
 
[[Category:Accounting,_tax_and_regulation]]
[[Category:The_business_context]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]
[[Category:Risk_frameworks]]
[[Category:Risk_reporting]]
[[Category:Financial_products_and_markets]]
[[Category:Liquidity_management]]

Revision as of 16:24, 5 March 2018

Penalties are generally designed to punish, or discourage, particular behaviour (or omissions).

In the finance context, penalties are usually money amounts.

Examples include tax penalties, penalty charges for late payment of debts, and loss of interest for early withdrawal of a fixed time deposit.


See also