Prudential Regulation Authority Rulebook

1.1

This Part applies to a CRR firm save that 14.2, 14.2A, 14.3, 14.6, 14.6A, 14.7 and 14.8 apply, as appropriate, to an Article 109 undertaking.

1.2

In this Part, the following definitions shall apply:

Delegated Regulation

means Commission Delegated Regulation (EU) 2015/61 of 10 October 2014 to supplement Regulation (EU) No 575/2013 of the European Parliament and the Council with regard to liquidity coverage requirement for Credit Institutions.

funding risk

means the risk that a firm does not have stable sources of funding in the medium and long term to enable it to meet its financial obligations, such as payments or collateral calls, as they fall due, either at all or only at excessive cost.

Internal Liquidity Adequacy Assessment Process (ILAAP)

means the process for the identification, measurement, management and monitoring of liquidity implemented by the firm in accordance with 3 – 13.

liquidity contingency plan

a plan for dealing with liquidity crises as required by 12.1.

liquidity coverage ratio

means the ratio calculated in accordance with Article 4(1) of the Delegated Regulation.

liquidity risk

means the risk that a firm, although solvent, does not have available sufficient financial resources to enable it to meet its obligations as they fall due.

overall liquidity adequacy rule

means the rule in 2.1.

1.3

Unless otherwise defined, any italicised expression used in this Part and in the CRR has the same meaning as in the CRR.