i. | A Bank should produce, at least once per year, an ILAAP approved and signed by the Board of Directors. |
ii. | A bank is required to demonstrate to SAMA that its ILAAP processes are comprehensive, rigorous and ensures that it has liquidity that is commensurate with its risk profile. |
iii. | A bank is required to put in place ILAAP processes and methodologies based on SAMA requirements and on its strategic and operational plans as set by its Board of Directors. |
The Pillar 2 liquidity framework should focus on liquidity risks not captured, or not fully captured, under Pillar 1 requirements. It is incumbent on banks to undertake their own assessment of liquidity risks, including Pillar 2 risks, and take appropriate measures to reduce or manage these risks.