Principles for Sound Liquidity Risk Management and Supervision
No: 351000147075 Date(g): 25/9/2014 | Date(h): 1/12/1435 Status: In-Force On 5 December 2008, SAMA issued a Circular entitled "Principles for Sound Liquidity Risk Management and Supervision". This circular was based on a BCBS document on this subject issued in September 2008. SAMA provided specific instructions to banks to introduce and integrate these Principles concerning Sound Liquidity Risk Management into their internal systems and processes. *SAMA also instructed banks to audits their internal systems and processes against these Principles and submit a report to SAMA on the main findings. Banks had undertaken those audits and submitted their findings to SAMA.
*SAMA would like the Banks to arrange an internal audit to assess the implementation of these Principles by the Banks (refer to attachment for guidance).
*The highlighted text is no longer applicable. Attachment
*The review should address the following:
1. The Banks existing liquidity management organization, policies, procedures, processes and controls are to be assessed against the Principles outlined in the document.
2. The Internal Auditor should make the following assessment against each Principle outlined in the Guidance document:
1. Fully Compliant 2. Largely Compliant 3. Adequate but improvements are needed 4. Largely Non-compliant 5. Non-compliant
3. For those principles where assessment is less than Fully Compliant, the weaknesses and gap should be identified.
4. A detailed plan should be made for each weakness/gap along with the actions to be taken and the time frame for completion of the corrective actions.
*Suggest removing, as this is not relevant anymore.
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