7.8 Supporting documentation

In addition to the information referred to in Sections 7.1-7.7, competent authorities should ensure that they receive from institutions all relevant supporting information including minutes of relevant committees and management body meetings evidencing the sound set-up and implementation of ILAAP, and in particular:

• a. approval of the overall set-up of ILAAP;
• b. approval of the key ILAAP elements, such as the funding plan, the liquidity contingency plan, the liquidity cost-benefit allocation mechanism, stress test assumptions and conclusions on outcomes, specific liquidity and funding risk appetite, targeted size and composition of liquid asset buffer, etc.;
• c. evidence of discussion on (changes in) the liquidity and funding risk profile, limit breaches, etc., including decisions on management actions or the explicit decision not to take any action;
• d. examples of significant decisions in new product approval committees evidencing, if applicable, the use of the liquidity transfer pricing (LTP) and risk views in these decisions;
• e. evidence of discussion of the analysis of the feasibility of the funding plan based on (changes in) market depth and volatility;
• f. evidence of decisions on management actions related to intraday liquidity risk after internal escalation due to intraday liquidity events;
• g. evidence of discussion of the outcome of liquidity stress tests and decision on any management (non-)action;
• h. evidence of discussion on the regular testing of the liquidity contingency plan and decisions on adjusting the management actions listed in the liquidity contingency plan;
• i. decision relating to the size and composition of the liquid asset buffer;
• j. evidence of discussion regarding the testing of the liquidity value of, and of the time required to sell or repo, assets included in the liquid asset buffer;
• k. where available, internal self-assessments in which institutions can take the opportunity to justify their level of compliance against publicly available criteria regarding risk management and control that affect ILAAP.