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  • 4. Major Building Blocks of the ILAAP

    • 4.1 Banks’ Roles and Responsibilities for the ILAAP

      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.
       

    • 4.2 ILAAP as Part of Pillar 2

      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.