Moreover, considering the importance of liquidity management, the guideline was revised to address new concerns that the crisis threw up. Banks have been advised to net-off deposits received by them from corporates and parastatal entities which are part of their customers’ treasury operations given that such deposits tend to be highly volatile. Fourth, enforcement.
Given the systemic importance of the banking system as a whole in a small country as ours, the Bank tightened the supervisory process by increasing the frequency of on-site examination of banks, enhancing the levels of exchange with the regulated entities and more intensive analysis of off-site prudential returns.