Which of the following procedures does APRA require to be adopted by FIs as part of their liquidity management strategies?
A)Liquidity management policy approved by the board.
B)Procedures for assessing and measuring liquidity.
C)A formal contingency plan for dealing with a liquidity crisis.
D)All of the listed options are correct.

Question

Quizplus · Accepted Answer

APRA requires FIs to adopt all of the listed procedures as part of their liquidity management strategies. A liquidity management policy approved by the board is necessary to ensure that the FI has a clear framework for managing its liquidity. Procedures for assessing and measuring liquidity are essential for identifying potential liquidity risks and monitoring the FI's liquidity position. A formal contingency plan for dealing with a liquidity crisis is necessary to ensure that the FI can respond quickly and effectively to any liquidity shocks. Therefore, all three options are correct and must be adopted by FIs.

Which of the Following Procedures Does APRA Require to Be