9.1 General considerations

Competent authorities should use the assessment under Title 8 to identify and assess current and future liquidity risk that the investment firm faces or may face and how the investment firm is able to mitigate those risk.

Competent authorities should conduct the SREP liquidity assessment process using the following steps:

• a. overall assessment of investment firm’s liquidity;
• b. determination of the need for specific liquidity measures based on the delegated regulation adopted in accordance with Article 42(6) of Directive (EU) 2019/2034;
• c. determination of the liquidity score.