Liquidity Comptroller's Handbook June 2012

This booklet provides guidance to examiners and bankers on assessing the quantity of liquidity risk exposure and the quality of liquidity risk management. The sophistication of a bank’s liquidity management process depends on its business activities and appetite for risk, as well as the overall level of liquidity risk. A well-managed bank, regardless of size and complexity, must be able to identify, measure, monitor, and control its exposure to liquidity risk in a timely and comprehensive manner. Liquidity core procedures can be found in the Community Bank Supervision Handbook (January 2010) and in Examiner View . This handbook provides examiners with supplemental procedures for further analyzing the quantity and quality of liquidity risk.