Financial Institutions Act
Financial Institutions (Liquidity Risk Management) Regulations, 2009
Statutory Instrument 22 of 2009
- Commenced on 9 February 2009
- [This is the version of this document at 1 December 2014.]
1. CitationThese Regulations may be cited as the Financial Institutions (Liquidity Risk Management) Regulations, 2009.
2. InterpretationIn these Regulations—“Board of Directors” means the highest body of authority in a bank responsible for strategically guiding, effectively monitoring management of, and properly accounting to shareholders of, the bank;“Committee” means the Risk Management Committee established under regulation 5(1);“liabilities” means future sacrifices of economic benefits that an entity is presently obliged to make to other entities as a result of past transactions or other events;“liquid assets” means—(a)cash on hand;(b)balances with the Central Bank excluding minimum reserve requirements;(c)balances with banks licensed in Seychelles;(d)balances with banks abroad;(e)treasury bills and other securities issued by the Government or the Central Bank and maturing within 365 days;(f)foreign treasury bills and other securities issued by the government of a member country of the Organisation for Economic Cooperation and Development and maturing within 365 days;(g)negotiable instruments approved by the Central Bank that are payable within 180 days;(h)other unencumbered, freely transferable assets approved by the Central Bank;“liquidity” means the ability of a bank to fund asset growth and meet contractual obligations including—(a)collateral needs; and(b)obligations to fund loan and investment commitments, deposit withdrawals and other maturing liabilities,as they come due;“liquidity risk” means the risk that a bank will not be able to efficiently meet expected and unexpected cash flow and collateral needs without affecting either the daily operations or the financial condition of the bank;“liquidity risk management” means the process of managing liquidity on both a day-to-day and long term basis to ensure that a bank's need for funds, in order to maintain the required level of liquidity and meet expected and contingent cash needs, can be regularly met at a reasonable cost;“net funding requirements” means the liquid assets necessary to fund a bank's cash obligations and commitments in the future, determined by performing a cash flow analysis in which all cash inflows are measured against all cash outflows to identify potential net shortfalls and the timing of these shortfalls;“senior officer” includes the chief executive officer, deputy chief executive officer, chief operating officer, chief financial officer, treasurer, secretary to the Board of Directors, chief internal auditor, manager of a significant unit within a financial institution and any other person with an equivalent position or similar responsibilities regardless of that person's official title.
4. Liquid assets requirements
5. Risk Management Committee
6. Liquidity risk management policy
7. Liquidity strategy, management plan and processThe liquidity risk management policy referred to in regulation 6 shall—
8. Management of liquidityA bank shall—
9. Reports to the Central BankBy or before noon on Tuesday of each week, each bank shall submit to the Financial Services Supervision Division of the Central Bank a report in such form as may be determined by the Central Bank, showing the bank's daily compliance with the minimum requirement for liquid assets during the previous week.
History of this document
09 February 2009