Second, for countries adopting the CLF as an alternative to HQLA, there is a question about how this will affect central bank liquidity operations in a stress situation. Typically, under existing arrangements, the central bank can closely control the quantum of system liquidity injections, given that standing (on-demand) facilities have a penalty margin attached.
Although directors are not expected to understand the nuances of every line of business or to oversee every transaction, they are responsible  1  COSO defines internal control as “a process, effected by an entity's board of directors, management and other personnel, designed to provide reasonable assurance regarding the achievement of: effectiveness and efficiency of operations, reliability of financial reporting, and compliance with applicable laws and regulations.” Internal Control Integrated Framework is available for purchase from the American Institute of Certified Public Accountants; an executive summary is available at http://www.coso.org/publications/executive_summary_integrated_framework.htm.