Liquidity Policy Template

Description

This comprehensive Credit Union Liquidity Policy Template is an essential tool for credit unions seeking to establish and maintain robust liquidity management practices. The template provides a detailed framework for developing a tailored liquidity policy that aligns with regulatory requirements and industry best practices. It covers key aspects of liquidity management, including risk assessment, monitoring procedures, contingency planning, and reporting mechanisms. The document is fully customizable, allowing credit unions to adapt the policy to their specific needs and risk profile. It includes sections on liquidity risk tolerance, measurement methodologies, stress testing scenarios, and governance structures. The template also addresses funding strategies, asset-liability management, and the integration of liquidity considerations into overall risk management processes. With clear guidelines on roles and responsibilities, this template helps ensure that all relevant stakeholders understand their part in maintaining the credit union’s liquidity position. Regular review and update procedures are outlined to keep the policy current and effective. By implementing this comprehensive liquidity policy, credit unions can enhance their resilience to market fluctuations and strengthen their overall financial stability.