Effective from Aug 31 2021 - Aug 30 2021 To view other versions open the versions tab on the right
This section should provide full details of a bank’s three-year funding strategy, with more detail on the first 12-18 months of the funding strategy. The following requirements should be met:
i.
The strategy should be approved by the Board Directors or its delegated authority.
ii.
The strategy should demonstrate how it will support the projected business activities in both business as usual and stress, implementing any required improvements in the funding profile and evidencing that the risk appetite and key metrics will not be breached by the planned changes.
iii.
Risks to the plan should be discussed.
iv.
Where a funding strategy is new, implementation procedures should be detailed.
v.
The funding risk strategy and appetite, and the profile, both the sources and uses should be described.
Banks should analyse the stability of the liabilities within the funding profile and the circumstances in which they could become unstable. This could include market shifts such as changes in collateral values, excessive maturity mismatch, inappropriate levels of asset encumbrance, concentrations (including single or connected counterparties, or currencies).
Banks are also required to analyse market access and current or future threats to this access, including the impact of any short-term liquidity stresses or negative news.
