• To properly measure, monitor and analyze liquidity and funding risks of the bank primarily through the internal liquidity risk metrics
• To highlight and escalate all matters pertaining to the Branch’s liquidity and funding risks under the internal liquidity risk metrics.
Strategy and Planning
• Monitor the internal liquidity risk metrics regularly to ensure that risks undertaken are within the risk appetite. Escalate triggers / breaches in accordance with the Bank’s escalation procedure.
• Ensures that internal liquidity risk reports are prepared in compliance with approved policy and procedures.
• Provide regular and timely reports, analysis, and assessment of the bank’s liquidity risk positions in accordance with the established SLAs. Regulatory submission timelines must be met at all times.
• To ensure risk appetite framework, limits, and controls for IRRBB and Liquidity Risk are aligned with the Group, as applicable.
• To provide insightful forward-looking view of the salient ALM risk issues Liquidity Risk Management
▪ Assess and manage liquidity risk, ensuring that the Bank has enough liquid assets to meet its short-term obligations.
▪ Conduct stress testing to evaluate how various adverse scenarios might impact the Bank’s liquidity and financial stability.
▪ Monitoring of the composition of the bank’s asset portfolio (e.g., loans, etc.) and liabilities (e.g., deposits) to optimize the bank’s risk-return profile. This involves monitoring the maturity and cash flow profiles of assets and liabilities. Liquidity Contingency Plan
▪ Maintain the Bank’s Contingency Funding Plan (CFP) Policy according to the Group’s Framework ensuring that plans to address liquidity crises are set in place.
▪ Coordinate with Treasury and other concerned stakeholders in testing the Bank’s CFP to ensure that roles of key stakeholders are well understood, coordination between the Branch and Group is seamless, and that key assumptions for liquidity are relevant.
▪ Monitoring of the Bank’s Early Warning System (EWS) to detect any liquidity risk arising from bank specific or macroeconomic events. Regulatory Compliance
▪ Ensure compliance with regulatory requirements related to liquidity risk management such as Basel III Liquidity Standards
▪ Prepare regulatory reports such as Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR) and ensure compliance with internal and regulatory limits.
Risk Assessment and Analysis
▪ Conduct quantitative and qualitative analysis of liquidity and interest rate risks. This may involve stress testing, scenario analysis, sensitivity analysis, etc., to assess the potential impact of adverse market conditions or economic shocks to the Bank’s liquidity position.
