LIQUIDITY RISK MANAGEMENT. (1) Within thirty (30) days of the date of this Agreement, the Board shall adopt a revised written Liquidity Risk Management Program (“Liquidity Program”) for the Bank. The Liquidity Program shall provide for the identification, measurement, monitoring, and control of the Bank’s liquidity risk exposure, and shall emphasize the importance of cash flow projections, diversified funding sources, a cushion of highly liquid assets, robust liquidity stress testing scenario analyses, and a formal, well-developed contingency funding plan as primary tools for measuring and managing liquidity risk. Refer to the “Interagency Policy Statement on Funding and Liquidity Risk Management,” dated March 22, 2010, (OCC Bulletin 2010-13); the “Addendum to the Interagency Policy Statement on Funding and Liquidity Risk Management: Importance of Contingency Funding Plans,” dated July 28, 2023; and the “Liquidity,” booklet of the Comptroller’s Handbook, for guidance.
(2) In addition to the general requirements set forth above, the Bank’s Liquidity Program shall, at a minimum:
(a) provide specific assigned accountability for development, execution, and oversight of liquidity risk management, including oversight by both the Board, or committee thereof, and Bank management;
(b) include appropriate policies and procedures for identifying, measuring, monitoring, and controlling liquidity risk exposures, that include at a minimum:
(i) assignment of accountability and processes for monitoring and managing intraday liquidity;
(ii) procedures and reporting to assess the risks related to deposit runoff, rollovers, wholesale, and alternative funding sources; and
(iii) reasonable limits to manage and control liquidity risk that are commensurate with the Bank’s complexity, business activities, and the Board’s risk appetite, that include at a minimum:
(1) minimum levels of highly liquid assets;
(2) limits or triggers on the structure of short-term and long- term funding of the Bank’s asset base;
(3) limitations on funding concentrations and other strategies to ensure diversification of funding sources; and
(4) limitations on contingent liabilities in aggregate and by individual category.
(c) include a no less than monthly generated sources and uses report to identify appropriate funding sources to meet projected funding needs over a short- and intermediate-term horizon (i.e., 30-, 60-, 90-, and 180-days); and
(d) include a no less than quarterly contingency funding plan that projects the Bank’s ...
LIQUIDITY RISK MANAGEMENT. Tier Description Annual Fee (per Fund)
LIQUIDITY RISK MANAGEMENT. (1) Within one hundred and twenty (120) days of the date of this Agreement, the Bank shall submit to the Assistant Deputy Comptroller for review and prior written determination of no supervisory objection an acceptable written Liquidity Risk Management Program (“Liquidity Program”) for the Bank. The Liquidity Program shall provide for the identification, measurement, monitoring, and control of the Bank’s liquidity risk exposure, and shall emphasize the importance of cash flow projections, diversified funding sources, a cushion of highly liquid assets, robust liquidity stress testing scenario analyses, and a formal, well- developed contingency funding plan as primary tools for measuring and managing liquidity risk. Refer to the “Interagency Policy Statement on Funding and Liquidity Risk Management,” dated March 22, 2010, (OCC Bulletin 2010-13); the “Addendum to the Interagency Policy Statement on Funding and Liquidity Risk Management: Importance of Contingency Funding Plans,” dated July 28, 2023, and the “Liquidity” booklet of the Comptroller’s Handbook, for guidance.
(2) In addition to the general requirements set forth above, the Bank’s Liquidity Program shall, at a minimum:
(a) provide specific assigned accountability for development, execution and oversight of liquidity risk management, including oversight by both the Board and senior management;
(b) include appropriate policies and procedures for identifying, measuring, monitoring, and controlling liquidity risk exposures, that includes at a minimum:
(i) assignment of accountability and processes for monitoring and managing intraday liquidity;
(ii) procedures to ensure that sufficient funds or access to funds exist to meet such cash flow needs under both expected and adverse conditions, including an adequate cushion to meet any unanticipated cash flow needs; and
(iii) procedures and reporting to assess the risks related to deposit runoff, rollovers, wholesale, and alternative funding sources;
(c) identify appropriate funding strategies and provide limits to manage and control liquidity risk that are commensurate with the Bank’s complexity and business activities that considers internal and external factors that could affect the Bank’s liquidity, that include at a minimum:
(i) limits or triggers placed on projected net cash flow positions over specified timeframes under both expected and adverse business conditions that are based on realistic assumptions supported by sound historical economic data;
(ii)...
LIQUIDITY RISK MANAGEMENT. Tier Description Annual Fee Tier 1 All Fund of Fund and In-Kind ETFs $1,000 Tier 2 All Funds holding < 50 securities $2,000 Tier 3 All Funds holding 50-500 securities $3,000 Tier 4 All Funds holding > 500 securities $4,000 Note: Each Fund will be designated as a specific "tier" upon the commencement of the Liquidity Risk Management service. An annual review will be performed to certify the appropriate classifications are applied for the subsequent 12 month period. The annual review will occur at the end of each calendar year and be effective on the first of January each year. Any Fund launches will be reviewed at inception to ensure the appropriate "tier" is applied to the new Fund.
LIQUIDITY RISK MANAGEMENT. (1) Within sixty (60) days of the date of this Agreement, the Board shall submit to the Assistant Deputy Comptroller for review and prior written determination of no supervisory objection an acceptable written Liquidity Risk Management Program (“Liquidity Program”) for the Bank. The Liquidity Program shall provide for the identification, measurement, monitoring, and control of the Bank’s liquidity risk exposure, and shall emphasize the importance of cash flow projections, diversified funding sources, a cushion of highly liquid assets, robust liquidity stress testing scenario analyses, and a formal, well-developed contingency funding plan as primary tools for measuring and managing liquidity risk. Refer to the “Interagency Policy Statement on Funding and Liquidity Risk Management,” dated March 22, 2010, (OCC Bulletin 2010-13); the “Addendum to the Interagency Policy Statement on Funding and Liquidity Risk Management: Importance of Contingency Funding Plans,” dated July 28, 2023, and the
LIQUIDITY RISK MANAGEMENT. (1) Within ninety (90) days, the Board shall:
(a) ensure that management develops comprehensive liquidity reports that accurately and effectively identify, measure, and monitor the Bank’s liquidity position;
(b) ensure that the plan includes important factors detailed in an extensive Contingency Funding Plan, such as:
(i) steps that will be taken to effectively manage a liquidity shortfall or crisis;
(ii) scenarios if sources of funds, such as brokered deposits or bank lines, are no longer available;
(iii) escalating funding needs and management’s approach thereto;
(iv) providing a detailed and forward looking sources and uses statement that clearly outlines primary and secondary sources of funds; and
(v) analyzing the continuing availability and volatility of present funding sources.
(2) The Board shall ensure that the Bank has processes, personnel, and control systems to ensure implementation of and adherence to the policy developed pursuant to this Article.
(3) The Bank may accept Brokered Deposits (as defined by 12 C.F.R. § 337.6(a)(2)) for deposit at the Bank only after obtaining a prior written determination of no supervisory objection from the Assistant Deputy Comptroller.
(4) The limitation of paragraph (3) shall include the acquisition of Brokered Deposits through any transfer, purchase, or sale of assets, including Federal funds transactions.
(5) If the Bank seeks to acquire Brokered Deposits, the Board shall apply to the Assistant Deputy Comptroller for written permission. Such application shall contain, at a minimum, the following:
(a) the dollar volume, maturities, and cost of the Brokered Deposits to be acquired;
(b) the proposed use of the Brokered Deposits, i.e., short-term liquidity or restructuring of liabilities to reduce cost;
(c) alternative funding sources available to the Bank; and
(d) the reasons why the Bank believes that the acceptance of the Brokered Deposits does not constitute an unsafe and unsound practice in its particular circumstances.
(e) The Assistant Deputy Comptroller may require the submission of such additional information as necessary to make an informed decision. Upon consideration of the Bank's application, the Assistant Deputy Comptroller will determine whether the proposed acquisition of Brokered Deposits may be accomplished in a safe and sound manner and may condition the Bank's acquisition as the Assistant Deputy Comptroller shall deem appropriate.
(f) Nothing in this article shall relieve the Bank of its oblig...
LIQUIDITY RISK MANAGEMENT. The Subadvisor agrees to assist with the liquidity classifications and such other duties that may reasonably be delegated to a subadvisor under the Fund’s liquidity risk management program in accordance with Rule 22e-4 under the 1940 Act.
LIQUIDITY RISK MANAGEMENT. An annual complex fee of $237,500 will apply for Liquidity Risk Management Services. Form N-LIQUID preparation and filing will incur a fee of $2,500 per filing, if required, in addition to the annual complex fee. The annual complex fee of $237,500 is based on the requirement to provide Liquidity Risk Management Services to 95 Funds. Any new fund launch (or closure) will increase (decrease) this fee. A review will occur at the end of each calendar year to certify the appropriate fee for the subsequent 12 month period.
LIQUIDITY RISK MANAGEMENT. (1) The Board shall immediately ensure liquidity risk management practices are strengthened. Such actions must include, but are not limited to:
(a) developing appropriate policies and procedures to govern wholesale funding activities, including the establishment of internal limits on funding concentrations;
(b) implementing a process to identify, measure, and monitor the Bank's rollover risk in contractual funding sources (e.g., Fed Funds Purchased, Correspondent Lines, Repurchase Agreements, Certificates of Deposit, Federal Home Loan Bank Advances); and
(c) reviewing, revising and expanding, as necessary, its contingency funding planning to include quantitative stress scenarios and a process for regular testing of the plan to ensure it is operationally robust.
(2) The Board shall review the Bank's liquidity on a quarterly basis. Reports shall set forth liquidity requirements and sources, and establish a contingency plan. Copies of these reports shall be forwarded to the Assistant Deputy Comptroller in the Bank's quarterly report to the Assistant Deputy Comptroller. ARTICLE XI
LIQUIDITY RISK MANAGEMENT. The Bank manages its liquidity on a prudent basis to ensure that a sufficiently high liquidity ratio relative to the statutory minimum is maintained throughout the year. The average liquidity ratio of the Bank for the years ended 31st December, 2003, 2004 and 2005 was well above the 25% minimum ratio set by the Banking Ordinance. The Asset and Liability Committee (“ALCO”) regularly reviews the Bank’s current loan and deposit mix, funding requirements and projections and maturity mismatches, and monitors the liquidity ratio on an ongoing basis. Appropriate liquidity limits are set and sufficient liquid assets are held to ensure that the Bank can meet all short-term funding requirements. The Bank’s funding comprises mainly deposits of customers, certificates of deposit and medium term notes issued. The issuance of certificates of deposit and medium term notes helps lengthen the funding maturity and reduce the maturity mismatch. Short-term interbank deposits are taken on a limited basis. The Bank is a net lender to the interbank market. Liquidity risk is managed by the Bank’s high proportion of liquid assets, including interbank assets (which are diversified by type, maturity and source), money market assets and short-term customer loans. For longer-term assets, the Bank has significant sources of longer-term funds, including debt securities, certificates of deposit and notes, money market borrowings and longer-term customer deposits. The Bank conducts regular stress tests on its liquidity position. Market risk is the risk of losses in assets, liabilities and off-balance sheet positions arising from movements in market rates and prices. Generally, the Bank’s market risk is associated with its positions in foreign exchange, debt securities and equity securities and derivatives in the trading book. Market risk exposure for different types of transactions is managed within risk limits and guidelines approved by ALCO and the Treasury Risk Committee. The overall risk limits comprise sub-limits for each of the different risk categories which are, interest rate, foreign exchange and equity prices. Exposures are managed and monitored by a combination of risk management techniques including position limits, principal or notional amounts, sensitivity limits, stop-loss limits and Value-at-Risk (“VaR”). All market- risk trading positions are subject to daily mark-to-market valuations which are monitored and managed by the Treasury Division. Independent monitoring, valuat...
