Difference between revisions of "Overall Liquidity Adequacy Rule"

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''Bank supervision - liquidity risk.''
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''Bank supervision - liquidity risk''
  
 
(OLAR).
 
(OLAR).
  
 
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.
 
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.
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The following are expressly excluded from the 'liquidity resources' assessed under the OLAR:
 
The following are expressly excluded from the 'liquidity resources' assessed under the OLAR:
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* [[Liquidity Coverage Ratio]]
 
* [[Liquidity Coverage Ratio]]
 
* [[Maturity mismatch]]
 
* [[Maturity mismatch]]
* [[Net stable funding ratio]]
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* [[Net Stable Funding Ratio]]
* [[Overall Liquidity Adequacy Rule]]
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* [[SREP]]
 
* [[SREP]]

Latest revision as of 12:20, 17 November 2016

Bank supervision - liquidity risk

(OLAR).

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.


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

  • Liquidity resources that can be made available by other members of its group.
  • Liquidity resources that may be made available through emergency liquidity assistance from a central bank.


See also