FSA launches liquidity consultation paper

The proposed rules are based on recently agreed international liquidity standards, in particular the Basel Committee on Banking Supervision's (BCBS) Principles for Sound Liquidity Risk Management and Supervision and take into market difficulties over the past 18 months. While it will remain the responsibility of firms' senior management to adopt a sound approach to liquidity risk management, the FSA is proposing: a new, quantitative framework for liquidity risk management which places greater emphasis on firms' ability to assess liquidity risks and develop policies to tackle them a...