7.7 Information on liquidity contingency plan

On the set-up of the liquidity contingency planning, competent authorities should ensure that they receive from institutions the following:

• a. description of the lines of responsibilities for designing, monitoring and executing the liquidity contingency plan;
• b. description of the strategies for addressing liquidity shortfalls in emergency situations;
• c. description of a tool to monitor market conditions that allow institutions to determine in a timely manner whether escalation and/or execution of measures is warranted;
• d. description of testing procedures, where available (e.g. examples of sales of new asset types, pledging collateral with central banks, etc.).

7.7.2 Operational documentation

On the implementation of liquidity contingency plans, competent authorities should ensure that they receive from institutions the following:

• a. the current liquidity contingency plan;
• b. information on the possible management actions including the assessment of their feasibility and liquidity generating capacity under different stress scenarios;
• c. the management view on the implications of all liquidity-related public disclosures made by the institution for the feasibility and timeliness of management actions included in the liquidity contingency plan;
• d. recent analysis of testing, including conclusions on the feasibility of the management actions included in the liquidity contingency plan;
• e. description of the internal view on the impact of executing the management actions included in the liquidity contingency plan, e.g. on the access the institution has to relevant markets and on the overall stability of its funding profile in the short and longer terms.