Standard
4.7
Reporting of liquidity risk
Regulations and guidelines
How to read a standard
A standard is a collection of subject-specific regulations and guidelines which both obliges and guides
supervised entities and other financial market participants, indicates the quality level expected by the
supervisor, sets out the supervisor’s key principles of good practice and provides justification for
regulation.
Each paragraph in a standard is furnished with a particular margin note:
•
Norm: A reference to a current legal or regulatory provision.
•
Binding: A FIN-FSA regulation that is legally binding on supervised entities or other financial
market participants, issued by the FIN-FSA by virtue of its regulatory power based in Finnish
law.
•
Recommendation: FIN-FSA recommendatory guidance to supervised entities or other financial
market participants.
•
Application guideline/example: A practical application guideline or example related to a
norm, binding regulation or recommendation. A reference to a FIN-FSA standard or a particular
point in the standard.
•
Justifications: An explanation of the background, purpose and objectives of a regulation or
standard.
FIN-FSA standards may be accessed from www.fin-fsa.fi/eng
THE FINANCIAL SUPERVISION AUTHORITY
Issued on 8.2.2005
RA Reporting
Valid from 1.4.2005 until further notice
RA4.7 Reporting of liquidity risk
Changed on 21.2.2011
J. No. 2/120/2005
3 (12)
TABLE OF CONTENTS
1
Application ___________________________________________ 4
2 Objectives ____________________________________________ 5
3
Legal basis ___________________________________________ 6
4
Preparation of the report and submission to FIN-FSA __________ 7
4.1
Content of the report _____________________________________ 7
4.2
Banks submitting their reports directly to FIN-FSA ______________ 7
4.3
Banks submitting their reports to FIN-FSA in centralised manner ___ 8
4.3.1
Savings banks ______________________________________ 8
4.3.2
Member credit institutions in the amalgamation of deposit
banks _____________________________________________ 8
4.3.3
Cooperative banks not belonging to the amalgamation of
deposit banks _______________________________________ 8
4.4
Submission of information for supervisory purposes _____________ 8
4.5
Verification of reported data ________________________________ 9
5
Further information ___________________________________ 10
6
revision history ______________________________________ 11
7
Obsolete guidelines and regulations ______________________ 12
tel +358 10 831 51
fax +358 10 831 5328
[email protected]
www.finanssivalvonta.fi
For further details, please contact
Market and Operational Risks, tel. 010 835
5223
THE FINANCIAL SUPERVISION AUTHORITY
Issued on 8.2.2005
RA Reporting
Valid from 1.4.2005 until further notice
RA4.7 Reporting of liquidity risk
Changed on 21.2.2011
J. No. 2/120/2005
1
Issued on 8 February 2005
Valid from 1 April 2005
4 (12)
APPLICATION
This reporting standard is applicable to the following entities (which are
generally referred to below as supervised entities):
• deposit banks
• foreign branches of deposit banks
• foreign credit institutions' branches with deposit bank operations in
Finland
• the Savings Bank Inspectorate
• central bodies as referred to in the Act on the Amalgamation of
Deposit Banks (599/2010).
tel +358 10 831 51
fax +358 10 831 5328
[email protected]
www.finanssivalvonta.fi
For further details, please contact
Market and Operational Risks, tel. 010 835
5223
THE FINANCIAL SUPERVISION AUTHORITY
Issued on 8.2.2005
RA Reporting
Valid from 1.4.2005 until further notice
RA4.7 Reporting of liquidity risk
Changed on 21.2.2011
J. No. 2/120/2005
2
5 (12)
OBJECTIVES
Issued on 8 February 2005
Valid from 1 April 2005
This standard defines supervised entities' reporting obligations in respect of
liquidity risk. The reporting standard refers to the standard on the
management of liquidity risk, issued within section 4 Capital adequacy and
risk management of the Financial Supervisory Authority's (FIN-FSA) set of
regulations.
Issued on 8 February 2005
Valid from 1 April 2005
The objective of the standard is to ensure that the Financial Supervisory
Authority can acquire information on the structure of supervised entities'
assets and liabilities and liquidity position. Legislation on credit institutions
requires that credit institutions do not take such risks in their operations that
could essentially jeopardise the credit institution's capital adequacy or
liquidity. Provisions are necessary on the one hand to protect the public eg
from the risk of losing repayable funds and on the other hand to supervise the
reliability and stability of the banking system.
tel +358 10 831 51
fax +358 10 831 5328
[email protected]
www.finanssivalvonta.fi
For further details, please contact
Market and Operational Risks, tel. 010 835
5223
THE FINANCIAL SUPERVISION AUTHORITY
Issued on 8.2.2005
RA Reporting
Valid from 1.4.2005 until further notice
RA4.7 Reporting of liquidity risk
Changed on 21.2.2011
J. No. 2/120/2005
3
Issued on 21 February 2011
Valid from 31 May 2011
6 (12)
LEGAL BASIS
The regulation on FIN-FSA is based on section 18, subsection 2 and section
60, subsection 5 of the Act on the Financial Supervisory Authority (878/2008).
tel +358 10 831 51
fax +358 10 831 5328
[email protected]
www.finanssivalvonta.fi
For further details, please contact
Market and Operational Risks, tel. 010 835
5223
THE FINANCIAL SUPERVISION AUTHORITY
Issued on 8.2.2005
RA Reporting
Valid from 1.4.2005 until further notice
RA4.7 Reporting of liquidity risk
Changed on 21.2.2011
J. No. 2/120/2005
4
4.1
7 (12)
PREPARATION OF THE REPORT
AND SUBMISSION TO FIN-FSA
Content of the report
Binding
Issued on 8 February 2005
Valid from 1 April 2005
The reporting standard concerns information used to monitor credit
institutions' liquidity risk. The collection of data comprises the assets and
liabilities in the supervised entity's balance sheet broken down by maturity
class.
Binding
Issued on 8 February 2005
Valid from 1 April 2005
The information shall be submitted in accordance with Stage 2 (Virati 2) of
the standardized data collection procedure of the authorities, and in the
manner more closely specified in the data collection files. Statistics Finland,
the Bank of Finland, and the Financial Supervisory Authority have jointly
approved and provided supervised entities with Stage 2 data collection files.
4.2
Banks submitting their reports directly to FIN-FSA
Binding
Issued on 8 February 2005
Valid from 1 April 2005
Commercial banks, foreign branches of deposit banks and Finnish branches of
foreign credit institutions shall submit liquidity risk information directly to FINFSA.
Binding
Issued on 8 February 2005
Valid from 1 April 2005
If limited liability savings and cooperative banks do not submit their
information to the Financial Supervisory Authority in aggregate form, they
shall also be obliged to submit their liquidity risk information directly to FINFSA.
tel +358 10 831 51
fax +358 10 831 5328
[email protected]
www.finanssivalvonta.fi
For further details, please contact
Market and Operational Risks, tel. 010 835
5223
THE FINANCIAL SUPERVISION AUTHORITY
Issued on 8.2.2005
RA Reporting
Valid from 1.4.2005 until further notice
RA4.7 Reporting of liquidity risk
Changed on 21.2.2011
J. No. 2/120/2005
Binding
Issued on 8 February 2005
Valid from 1 April 2005
4.3
Banks submitting their reports to FIN-FSA in
centralised manner
4.3.1
Savings banks
Savings banks shall submit their data on liquidity risk to the Savings Bank
Inspectorate by the time set by it, unless the Financial Supervisory Authority
decides otherwise in the case of an individual bank. The Savings Bank
Inspectorate shall pass on the aggregate data to FIN-FSA.
4.3.2
Binding
Issued on 21 February 2011
Valid from 31 May 2011
8 (12)
Member credit institutions in the amalgamation of deposit
banks
Credit institutions that are members of the central body referred to in the Act
on the Amalgamation of Deposit Banks shall submit their data on liquidity risk
to the central body by the time set by it, unless the Financial Supervisory
Authority decides otherwise in the case of an individual member credit
institution. The central body shall pass on the aggregate data to FIN-FSA.
4.3.3
Cooperative banks not belonging to the amalgamation of
deposit banks
Recommendation
Issued on 21 February 2011
Valid from 31 May 2011
The Financial Supervisory Authority recommends that cooperative banks that
are not members of the central body referred to in the Act on the
Amalgamation of Deposit Banks submit their information on liquidity risk to
the Association of Local Cooperative Banks, which submits information on all
these banks to FIN-FSA in aggregate form.
Binding
Issued on 21 February 2011
Valid from 31 May 2011
If information is not submitted in aggregate form, a cooperative bank not
belonging to the amalgamation shall submit its information in the required
format directly to the Financial Supervisory Authority.
4.4
Submission of information for supervisory purposes
Application guideline
Issued on 21 February 2011
Valid from 31 May 2011
Detailed information on the data collection procedure is also available on the
website of Statistics Finland (http://www.stat.fi/tup/virati/index.html).
Binding
Issued on 21 February 2011
Valid from 31 May 2011
The reports comprising information as required in the detailed instructions on
the data collection procedure shall be submitted to FIN-FSA as follows:
reporting dates 31 March, 30 June, 30 September and 31 December. The
reports shall be submitted within 20 business days. Business days refer to
days when banks are open for business.
tel +358 10 831 51
fax +358 10 831 5328
[email protected]
www.finanssivalvonta.fi
For further details, please contact
Market and Operational Risks, tel. 010 835
5223
THE FINANCIAL SUPERVISION AUTHORITY
Issued on 8.2.2005
RA Reporting
Valid from 1.4.2005 until further notice
RA4.7 Reporting of liquidity risk
Changed on 21.2.2011
J. No. 2/120/2005
4.5
9 (12)
Verification of reported data
Binding
Issued on 8 February 2005
Valid from 1 April 2005
Supervised entities are required to prepare a declaration on the accuracy of
reported data. The purpose of the procedure is to ensure that the data
submitted by the supervised entity to the Financial Supervisory Authority is
checked and accurate. The declaration must be dated and signed by both the
person preparing the report and the person verifying the data. The signed
declaration form must be kept by the supervised entity and presented to FINFSA on request. The declaration must be prepared for the first time for the
reporting of 31 March 2005. The declaration must be updated each time
changes occur in the process it describes.
Binding
Issued on 8 February 2005
Valid from 1 April 2005
Continued reporting of incorrect data to the Financial Supervisory Authority
shall lead to a written request to the supervised entity for clarification. In its
reply the supervised entity must present an action plan on how it will remedy
the erroneous reporting. Failure to comply with this standard may lead to
administrative or other sanctions.
Binding
Issued on 8 February 2005
Valid from 1 April 2005
Reporting instructions, together with instructions on electronic reporting, are
made available on FIN-FSA's website (www.finanssivalvonta.fi) under
Regulation.
tel +358 10 831 51
fax +358 10 831 5328
[email protected]
www.finanssivalvonta.fi
For further details, please contact
Market and Operational Risks, tel. 010 835
5223
THE FINANCIAL SUPERVISION AUTHORITY
Issued on 8.2.2005
RA Reporting
Valid from 1.4.2005 until further notice
RA4.7 Reporting of liquidity risk
Changed on 21.2.2011
J. No. 2/120/2005
5
10 (12)
FURTHER INFORMATION
Please find the necessary contact information in the list of Persons
responsible for standards provided on the FIN-FSA website. For further
information, please contact:
• FS: Market and Operational Risks, tel. 010 835 5223
tel +358 10 831 51
fax +358 10 831 5328
[email protected]
www.finanssivalvonta.fi
For further details, please contact
Market and Operational Risks, tel. 010 835
5223
THE FINANCIAL SUPERVISION AUTHORITY
Issued on 8.2.2005
RA Reporting
Valid from 1.4.2005 until further notice
RA4.7 Reporting of liquidity risk
Changed on 21.2.2011
J. No. 2/120/2005
6
Issued on 21 February 2011
Valid from 31 May 2011
11 (12)
REVISION HISTORY
Revised on 31 May 2011: Section 4.4 on submission of information for
supervisory purposes has been added to the standard.
tel +358 10 831 51
fax +358 10 831 5328
[email protected]
www.finanssivalvonta.fi
For further details, please contact
Market and Operational Risks, tel. 010 835
5223
THE FINANCIAL SUPERVISION AUTHORITY
Issued on 8.2.2005
RA Reporting
Valid from 1.4.2005 until further notice
RA4.7 Reporting of liquidity risk
Changed on 21.2.2011
J. No. 2/120/2005
7
Issued on 8 February 2005
Valid from 1 April 2005
12 (12)
OBSOLETE GUIDELINES AND
REGULATIONS
This standard renders the following regulation obsolete:
• Regulation 105.5 on reporting liquidity risk (issued on 1 July 1998,
J. No. 1/329/98).
tel +358 10 831 51
fax +358 10 831 5328
[email protected]
www.finanssivalvonta.fi
For further details, please contact
Market and Operational Risks, tel. 010 835
5223