Case of NBR

III. Legal basis for ICAAP, ILAAP and SREP (8)
‣ Credit institutions shall consider alternative scenarios on liquidity positions and on risk
mitigants and review the assumptions underlying decisions concerning the funding position
at least annually
‣ Credit institutions shall adjust their strategies, internal policies and limits on liquidity risk and
develop effective contingency plans, taking into account the outcome of the alternative
scenarios
‣ Credit institutions shall have in place contingency funding plans for the currencies in
which the credit institutions are active.
‣ Credit institutions shall have in place liquidity recovery plans
‣ Plans shall be tested by the credit institutions at least annually, updated on the basis of
the outcome of the alternative scenarios, reported to and approved by the senior
management, so that internal policies and processes can be adjusted accordingly.
‣ Under the overall liquidity risk management framework, credit institutions shall also consider
the liquidity risk arising from the impossibility of applying some funding agreements as a result
of lack of contractual clauses and possible implicit support.
23