(1) Institutions shall have robust strategies, policies, processes and systems for the identification, measurement, management and monitoring of liquidity risk over an appropriate set of time horizons, including intra-day, so as to ensure that the institution maintains adequate levels of liquidity buffers.
(2) The strategies, policies, processes and systems, referred to in paragraph (1), shall be -
(a) tailored to business lines, currencies, branches and legal entities and shall include adequate allocation mechanisms of liquidity costs, benefits and risks, and
(b) proportionate to the complexity, risk profile, scope of operation of the institutions concerned and risk tolerance set by the management body and reflect the institution's importance in each Member State in which it carries out business.
(3) Institutions shall communicate its risk tolerance, referred to in subparagraph (b) of paragraph (2), to all relevant business lines.
(4) Institutions shall, taking into account the nature
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