462. Following the above assessment, competent authorities should form a view on the institution's funding and liquidity risks. This view should be reflected in a summary of findings, accompanied by a risk score based on the considerations specified in Tables 9 and 10.
Table 9. Supervisory considerations for assigning a score to liquidity risk
|
Risk score |
Supervisory view |
Considerations in relation to inherent risk |
Considerations in relation to adequate management and controls |
|---|---|---|---|
|
1 |
There is a low risk of significant prudential impact on the institution considering the level of inherent risk and the management and controls. |
• There is non-material/very low risk arising from mismatches (e.g. between maturities, currencies, etc.). • The size and composition of the liquidity buffer is adequate and appropriate. • The level of other drivers of liquidity risk (e.g. reputational risk, inability to transfer intra- group liquidity, etc.) is not material/very low. |
• There |