The International Financial Service Centres Authority on 24th June 2021 has notified the guidelines on Liquidity Risk Management which ensures that the Finance Company/Finance Unit(FC/FU)anticipates liquidity needs.
The FC/FU shall have a liquidity risk management framework in order to ensure a sound and robust liquidity risk management system and ensure that it maintains sufficient liquidity.
The FC/FU shall monitor certain critical ratios in respect of liquidity risk measurement by putting in place an internally defined limit approved by the Board/Governing Body, for these ratios. The ratios and the internal limits shall be based on an FC/FU’s liquidity risk management capabilities, experience profile, and the nature, scale, and complexity of their business.
