403. In accordance with Article 39(2), point (b) of Directive (EU) 2019/2034, competent authorities …

In accordance with Article 39(2), point (b) of Directive (EU) 2019/2034, competent authorities may require action to be taken to address deficiencies identified with regard to the investment firm’s ability to identify, measure, monitor and control liquidity risk, by means including:

• a. enhancing its stress-testing capacity to improve its ability to identify and quantify material sources of liquidity risk to the investment firm;
• b. enhancing its ability to monetise its liquid assets;
• c. enhancing its liquidity contingency plan and liquidity early warning indicators framework; and/or
• d. enhancing reporting of liquidity management information to the investment firm’s management body and senior management.

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/