Intraday Liquidity Risk Management

We as BDO FS Risk are of the opinion that intraday liquidity risk is an underrated risk type and deserves more and special attention!

In November 2024, the European Central Bank (ECB) published its sound and good practices on Intraday Liquidity Risk Management (ILRM), outlining key practices which set the minimum regulatory expectations.

This publication underscores the ECB’s continued focus on intraday liquidity risk (ILR), aligning with broader regulatory priorities and SREP reviews. The evolving supervisory landscape highlights the increasing importance of real-time liquidity monitoring, contingency planning, and stress testing frameworks.

In the summary below, we present the most important aspects and expectations of a sound ILRM framework, along with our key takeaways from the ECB’s and our own reviews. Additionally, based on our recent audit experience, we highlight potential areas of regulatory focus that institutions should proactively address.

  Intraday Liquidity Risk Management Publication