Liquidity risk One of BPNG’s objectives is to ensure that all banks have sufficient liquidity to meet obligations as they fall due across a wide range of operating circumstances. Institutions are particularly vulnerable to sudden and unexpected demand for funds, which may have significant implications for other institutions and for the financial system as a whole.
The onus is on the Board to ensure that they are apprised for key liquidity risk issues arising within the bank and that these are well understood and addressed in a timely manner.