Basel III – Liquidity Framework – Reforms to Global Liquidity Risk Regulations

The Basel Committee has published the liquidity portion of the Basel III reforms to the capital and liquidity framework. These reforms cover the supervisory framework for liquidity risk measurement via two minimum funding liquidity standards. A brief summary of these liquidity ratios is given in the following post:

This is followed by a more detailed review of each standard in the following posts:

Besides these two standards, the framework also presents five metrics that will be used by banks and supervisors as tools for monitoring and tracking the institution’s liquidity position and for identifying signs of early liquidity difficulty and stress. These metrics are discussed in the following post:

Learn more about the changes that Basel III will bring to the Basel II capital requirement framework in the following post:

Review ICAAP and related topics with these posts:

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