476. Competent authorities should develop and apply supervisory liquidity benchmarks as quantitative tools to support their assessment of whether the liquidity held by the institution provides sound coverage of risks to liquidity and funding. They should be used to provide a prudent, consistent, transparent and comparable benchmark with which to calculate and compare specific quantitative liquidity requirements for institutions.
477. When developing supervisory liquidity benchmarks, competent authorities should take into account the following criteria:
a. benchmarks should be prudent, consistent and transparent;
b. benchmarks should be developed using the supervisory assessment of risks to liquidity and funding and the supervisory liquidity stress tests; supervisory liquidity stress testing should be a core part of the benchmark;
c. benchmarks should provide comparable outcomes and calculations so that quantifications of liquidity requirements for institutions with similar business mod
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