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Central Bank of The Bahamas
Friday, January 4, 2019 Friday, January 4, 2019 |
The Central Bank of The Bahamas (“the Central Bank”) is pleased to release for a 60 day consultation period, a discussion paper on Implementing Basel III: Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR) in The Bahamas. The consultation period will run from 27th December, 2018 to 28th February, 2019.
The liquidity rules introduced by the Basel Committee provide SFIs with a credible and comprehensive framework for managing liquidity risks in their day-to-day operations. Further, they allow bank supervisors to monitor liquidity risks in a timely and more effective manner.
Although the Basel standard is intended for much more complex banking systems and capital markets, the proposed Bahamian liquidity standards will be much simpler and cheaper to comply with. This is in keeping with the Central Bank’s intent to develop prudential policies and regulations that balance safety, efficiency and competitiveness in the Bahamian banking system, while promoting financial system stability.
This is an excerpt from Central Bank of The Bahamas as it appeared on January 4, 2019. For updates or to read the current version of this post in its entirety, please click here.
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