CRED 9.3 Minimum liquidity requirements
The liquidity requirements set out in CRED 9.3.2 RCRED 9.3.5 R are minimum requirements and are subject to the overarching requirement of CRED 9.2.1 R.
A credit union must at all times hold liquid assets of a value equal to at least 5% of its total relevant liabilities.
A version 1 credit union must further hold enough liquid assets to ensure that on no two consecutive quarter ends is the level of the credit union's liquid assets below 10% of its total relevant liabilities.
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- (1)
For the purposes of CRED 9.3.2 R - CRED 9.3.5 R, only those assets shall count as liquid which can be realised for cash at short notice, and within at most eight days.3
- (2)
Amounts loaned by one credit union to another must not be counted as liquid by the lender.3
For the purposes of calculating the ratio of a credit union's liquid assets to its total relevant liabilities (in CRED 9.3.2 RCRED 9.3.5 R), assets shall be valued at the amount for which they could be realised within eight days.
- (1)
For the purposes of calculating the ratio of a credit union's liquid assets to its total relevant liabilities (in CRED 9.3.2 RCRED 9.3.5 R), the securities referred to in CRED 7.2.1 RCRED 7.2.3 R should be valued on the basis that they could be realised at market value2 minus the following discounts (whether or not this is the case in fact):
- (2)
Compliance with CRED 9.3.9 E (1) may be relied on as tending to indicate compliance with CRED 9.3.8 R (the 8-day realisation-value rule).
- (2)
Compliance with CRED 9.3.9 E (1) may be relied on as tending to indicate compliance with CRED 9.3.8 R (the 8-day realisation-value rule).
An asset maturing on a non-business day should be regarded as maturing on the succeeding business day.
For the purposes of clarity, funds serving liquidity purposes may be invested in the manner set out in CRED 7.2.1 R1 provided that the resulting assets satisfy the relevant requirements of this chapter.