40. On evidencing the set-up of a process that ensures the institution has a robust and specific …

On evidencing the set-up of a process that ensures the institution has a robust and specific framework for liquidity and funding risk management, including a process for identifying, measuring and controlling liquidity and funding risks, competent authorities should ensure that they receive from institutions the following:

• a. description of the scope of ILAAP including an overview of and reasoning for any deviations from the prudential scope of liquidity requirements recognising possible waivers;
• b. description of the set-up of ILAAP explaining the relation between all its components and providing reasoning about how that set-up ensures the institution has access to sufficient liquidity;
• c. the criteria applied by the institution for the selection of significant risk drivers for liquidity and funding risk, including the selection of significant currencies for monitoring the liquidity and the funding position;
• d. the criteria applied by the institution for the selection of appropriate tools and assumptions for ILAAP, such as the method of measuring and projecting current and future cash-flows of assets, liabilities and off-balance-sheet items over appropriate time horizons.

7.1.2 Operational documentation

1. Overview

1.1 References

1.2 Identified Requirements

1.3 Related Standards

2. Identified Requirements

3. Related Standards

• EBA - Published by the European Banking Authority at https://www.eba.europa.eu/