UK Finance has responded to the PRA’s consultation paper CP13/17 on Liquidity Risk in Pillar 2 which proposes the introduction of a Cash Flow Mismatch Risk framework. Whilst supporting a framework for addressing this particular risk, which arises as banks borrow short and lend long, we raised concerns about the CP’s assumption that all non-maturing deposits flow out of the bank on day one of a stress.

Please read the full response via the link below.

 

Attachments
UK Finance response to PRA CP 13/17 on Pillar 2 liquidity