Article 86 Liquidity risk

Competent authorities shall ensure that institutions have robust strategies, policies, processes and systems for the identification, measurement, management and monitoring of liquidity risk over an appropriate set of time horizons, including intra-day, so as to ensure that institutions maintain adequate levels of liquidity buffers. Those strategies, policies, processes and systems shall be tailored to business lines, currencies, branches and legal entities and shall include adequate allocation mechanisms of liquidity costs, benefits and risks.

The strategies, policies, processes and systems referred to in paragraph 1 shall be proportionate to the complexity, risk profile, scope of operation of the institutions and risk tolerance set by the management body and reflect the institution's importance in each Member State in which it carries out business. Institutions shall communicate risk tolerance to all relevant business lines.

Competent authorities shall ensure that institutions, taking into account the nature, scale and complexity of their activities, have liquidity risk profiles that are consistent with and, not in excess of, those required for a well-functioning and robust system.

Competent authorities shall ensure that institutions develop methodologies for the identification, measurement, management and monitoring of funding positions. Those methodologies shall include the current and projected material cash-flows in and arising from assets, liabilities, off-balance-sheet items, including contingent liabilities and the possible impact of reputational risk.

Competent authorities shall ensure that institutions distinguish between pledged and unencumbered assets that are available at all times, in particular during emergency situations. They shall also ensure that institutions take into account the legal entity in which assets reside, the country where assets are legally recorded either in a register or in an account and their eligibility and shall monitor how assets can be mobilised in a timely manner.

Competent authorities shall ensure that institutions also have regard to existing legal, regulatory and operational limitations to potential transfers of liquidity and unencumbered assets amongst entities, both within and outside the European Economic Area.

Competent authorities shall ensure that institutions consider different liquidity risk mitigation tools, including a system of limits and liquidity buffers in order to be able to withstand a range of different stress events and an adequately diversified funding structure and access to funding sources. Those arrangements shall be reviewed regularly.

Competent authorities shall ensure that institutions consider alternative scenarios on liquidity positions and on risk mitigants and review the assumptions underlying decisions concerning the funding position at least annually. For those purposes, alternative scenarios shall address, in particular, off-balance sheet items and other contingent liabilities, including those of Securitisation Special Purpose Entities (SSPE) or other special purpose entities, as referred to in Regulation (EU) No 575/2013, in relation to which the institution acts as sponsor or provides material liquidity support.

Competent authorities shall ensure that institutions consider the potential impact of institution-specific, market-wide and combined alternative scenarios. Different time periods and varying degrees of stress conditions shall be considered.

Competent authorities shall ensure that institutions adjust their strategies, internal policies and limits on liquidity risk and develop effective contingency plans, taking into account the outcome of the alternative scenarios referred to in paragraph 8.

Áiritheoidh údaráis inniúla go mbeidh pleananna téarnamh chun leachtachta i bhfeidhm ag institiúidí ina mbeidh straitéisí leordhóthanacha agus bearta cur chun feidhme cearta leagtha amach chun dul i ngleic le heasnaimh leachtachta fhéideartha, lena n‐áirítear i leith brainsí atá bunaithe i mBallstát eile. Áiritheoidh údaráis inniúla go dtástálfaidh na hinstitiúidí na pleananna sin uair sa bhliain ar a laghad, go nuashonróidh siad iad ar bhonn thoradh na gcásanna malartacha a leagtar amach i mír 8, go mbeidh siad tuairiscithe don lucht bainistíochta sinsearach agus faofa acu, sa chaoi gur féidir beartais agus próisis inmheánacha a choigeartú dá réir. Tabharfaidh na hinstitiúidí na céimeanna oibríochtúla is gá roimh réidh chun a áirithiú gur féidir pleananna téarnamh chun leachtachta a chur chun feidhme láithreach. Ar na céimeanna oibríochtúla sin, beidh sealbhú comhthaobhachta a bheidh ar fáil láithreach le haghaidh cistiú banc ceannais. San áireamh ansin, tá sealbhú comhthaobhachta in airgeadra Ballstáit eile más gá, nó in airgeadra tríú tír a bhfuil neamhchosaintí uirthi ag an institiúid, agus más gá ó thaobh oibríochta laistigh de chríoch Ballstáit óstaigh nó tríú tír a bhfuil sí neamhchosanta uirthi.