Federal Banking Agencies Issue Policy Statement on Funding and Liquidity Risk Management

April 19, 2010

The federal banking agencies, in conjunction with the Conference of State Bank Supervisors (CSBS), released a policy statement on March 17, 2010 on their expectations for sound funding and liquidity risk management practices.1 This policy statement, adopted by each of the agencies, summarizes the principles of sound liquidity risk management issued previously and, when appropriate, supplements them with the 'Principles for Sound Liquidity Risk Management and Supervision' issued in September 2008 by the Basel Committee on Banking Supervision.