Principle 13

A bank should publicly disclose information on a regular basis that enables market participants to make an informed judgement about the soundness of its liquidity risk management framework and liquidity position.

128. Public disclosure improves transparency, facilitates valuation, reduces uncertainty in the markets and strengthens market discipline. A bank should disclose sufficient information regarding its liquidity risk management to enable relevant stakeholders to make an informed judgement about the ability of the bank to meet its liquidity needs.

129. A bank should disclose its organisational structure and framework for the management of liquidity risk. In particular, the disclosure should explain the roles and responsibilities of the relevant committees, as well as those of different functional and business units. A bank's description of its liquidity risk management framework should indicate the degree to which the treasury function and liquidity risk management is centralised or decentralised. A bank should describe this structure with regard to its funding activities, to its limit setting systems, and to its intra-group lending strategies. Where centralised treasury and risk management functions are in place, the interaction between the group's units should be described. The objective for the business units in the organisation should also be indicated, for instance, the extent to which they are expected to manage their own liquidity risk.