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Article 3 - Assessment of liquidity risk stemming from funding

Article 3
Assessment of liquidity risk stemming from funding

When assessing the availability and quality of the funding sources of an investment firm, competent authorities shall consider all of the following:

((a))

the availability of existing funding sources and the access to pre-arranged emergency funding sources;

((b))

whether such funding sources are secured or unsecured;

((c))

the currency of such funding sources;

((d))

the amount of unencumbered assets that would be available to obtain secured funding;

((e))

the different maturities of such funding sources according to their closest maturity date and the earliest date that they can contractually be called upon;

((f))

the risk of disruption to the investment firm’s daily cash flows caused by an interruption in the investment firm’s credit facilities;

((g))

other committed but undrawn funding sources provided to the investment firm.

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