BoE to step up scrutiny of daily liquidity risks

Regulator wants more data on cashflow mismatches, but no plans for Pillar 2 charge yet

Bank of England blue sky
Bank of England: looking at adding a liquidity risk component to stress-testing exercise, says Victoria Saporta

New liquidity reporting requirements set to debut next month will allow the Bank of England to monitor more closely any daily cashflow mismatches that are not captured by existing regulations, a senior regulator has said.

The daily liquidity reports for stress periods will supplement the standardised liquidity coverage ratio (LCR), which requires banks to hold enough high-quality liquid assets to cover 30 days of stressed outflows.   

“These data will be used to ensure that throughout the LCR

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