FFFS 2010:7

Regulations regarding management of liquidity risks in credit institutions and investment firms

In force from 2010-12-31

Summary

As of 31 December 2010, banks, other credit institutions and investment firms are subject to new rules for the management of liquidity risks. The purpose is to contribute to a stable and well-functioning financial system by undertakings and financial groups maintaining a higher standard for their liquidity management than what had previously been required.

The regulations introduce stricter requirements on the undertakings to have an explicit risk tolerance, strategies and guidelines for their liquidity management. The regulations regulate how the internal control and independent audit shall be organised within this area. They introduce rules on the measurement of liquidity risks, which in part places requirements on the undertakings to conduct stress tests. One particularly important section regulates which assets may be included in the undertaking's liquidity reserve. The regulations also regulate governance issues such as limits and contingency planning.

The regulations are primarily based on changes to the EU Capital Regulations Directive (in particular Annex V) and the Basel Committee's recommendations from the autumn of 2008.

Upon entry into force of these regulations, the sections of Finansinspektionen's general guidelines (FFFS 2000:10) regarding the management of market and liquidity risks in credit institutions and investment firms that pertain to liquidity risks are repealed.

Amendments

FI is changing the scope to agree with the scope for the liquidity regulations in the Capital Requirements Regulation and introducing requirements on the disclosure of information. FI is adjusting the terms and phrases to agree with those used in the Capital Requirements Regulation. FI is also updating references to acts and regulations that have been repealed with references to the acts and regulations that replaced them. The amendments enter into force on 2 August 2014. Amendment 2014:21

Documents

Changes

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