The Basel Committee on Banking Supervision (the “Basel Committee”), in consultation with the Committee on Payment and Settlement Systems, recently published a final document concerning supervisory monitoring tools for intraday liquidity management (the “Intraday Liquidity Document”).

The Intraday Liquidity Document complements the Basel Committee’s overall liquidity risk management framework by setting forth a new set of metrics (or “ monitoring tools”) intended to enable national supervisors to monitor banks’ intraday liquidity risk and ability to meet payment and settlement obligations on a timely basis under both normal and stressed conditions. The tools are also intended to benefit authorities responsible for the oversight of payment and settlement systems.

The Intraday Liquidity Document’s prescribed framework includes: detailed design and reporting items for each of the intraday liquidity monitoring tools, which are intended to provide information to identify and monitor reporting banks’ intraday liquidity risk under normal conditions; and planning for stress scenarios, which would require reporting banks to assess potential adverse impacts of certain stress conditions and discuss responses to such impacts with their respective supervisors.

The document also addresses other monitoring and reporting matters, which arise from differences within and among banking organizations with regard to systems, currencies, organizational structures and jurisdictions of operation. The framework contemplates monthly reporting by banks commencing on January 1, 2015 (to coincide with the Basel Committee’s implementation timeline for the Liquidity Coverage Ratio under Basel III).

The full memo is available here.