Banking – Internal Liquidity Adequacy Assessment (ILAA) document
Regulators require banks to complete an Internal Liquidity Adequacy Assessment (ILAA) at least annually. This process is evidenced in the ILAA document which aims to inform regulators' and firms’ governing bodies about ongoing liquidity risks. Banks are also required to develop a Contingency Funding Plan (CFP), which should be included in the ILAA document. We can assist you in the development of the ILAA document and keepyou abreast of any relevant regulatory changes as they arise.
The ILAA document should contain all of the information necessary to assess the appropriate amount of liquidity a firm should hold, form a view on the liquidity risk management process and evaluate compliance with regulators’ qualitative requirements. The ILAA document should include the CFP, which sets out an institution’s strategies for addressing liquidity shortfalls in emergency situations.
Our professionals have assisted a wide range of firms in assessing their liquidity risk management process, in performing the ILAA and in drafting the ILAA document.
Our team will use an approach tailored to your particular needs and support you in complying with the regulator’s expectations.
Our team can advise and support you in the following areas:
- Developing the ILAA document (including the technical notes related to the methodologies applied to assess the liquidity requirements)
- Evaluating the ILAA document in order to assess compliance with regulatory requirements
- Updating the ILAA document to align it with regulatory requirements
- Developing or reviewing the CFP
- Addressing the regulator’s potential requests
For more information about our capabilities please contact us.
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