1. General Definition of the ILAAP
| No: 42012157 | Date(g): 17/10/2020 | Date(h): 1/3/1442 | Status: In-Force |
Effective from Aug 31 2021 - Aug 30 2021
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The Internal Liquidity Adequacy Assessment Process (ILAAP) is defined as “the processes for the identification, measurement, management and monitoring of liquidity implemented by the bank pursuant to SAMA liquidity risk management regulations”. It thus contains all the qualitative and quantitative information necessary to underpin the risk appetite, including the description of the systems, processes and methodology to measure and manage liquidity and funding risks.
These ILAAP guidelines shall only serve as a starting point in supervisory dialogues with banks. Therefore, they should not be understood as comprehensively covering all aspects necessary to implement a sound, effective and comprehensive ILAAP. It is the responsibility of the bank to ensure that its ILAAP is sound, effective and comprehensive duly taking into account the nature, scale and complexity of its activities.