IMF urges ACPR to begin field testing on improved monitoring of liquidity risk

Written by Adam Cadle

01/11/2019

The Autorité de contrôle prudentiel et de résolution (ACPR) has been encouraged to begin field testing on additional reporting and improved monitoring of liquidity risk for the French insurance market.

The IMF said ACPR should “begin field testing such requirements at the earliest opportunity on a voluntary basis”.

A discussion paper was published by EIOPA in March 2019 indicating additional reporting on liquidity risk and improved monitoring of liquidity risk are under consideration at a European level for macroprudential purposes.

“While the EIOPA discussion paper stops short of recommending liquidity requiremenrts of insurers, given the prevalence of bacassurance models France should consider the development of a liquidity requirement for financial conglomerates,” the IMF stated.

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