In this regard, some degree of liquidity management at the local level plays a significant role in the BCL liquidity risk assessment of banks, and it must be subject to its approval. Finally, the BCL pays particular importance at assessing whether banks’ internal pricing of liquidity within the institution and among group member duly reflects liquidity risk.
But even these tools and procedures are not enough. The BCL liquidity surveillance framework includes a combination of qualitative and quantitative elements. On-site visits are an important component of the BCL monitoring framework in order to assess business models and the liquidity situation and the risk management framework of credit institutions.