On 2 March 2020, the PRA published Policy Statement 4/20: Liquidity – The PRA’s approach to supervising liquidity and funding risks (PS4/20). PS4/20 is relevant to PRA-authorised UK banks, building societies and PRA-designated UK investment firms.

In PS4/20 the PRA provides feedback to responses to Consultation Paper 27/19: Liquidity: The PRA’s approach to supervising liquidity and funding risks (CP27/19). PS4/20 also contains the PRA’s final policy, the updated Supervisory Statement 24/15: The PRA’s approach to supervising liquidity and funding risks’.

Having considered the responses received to CP27/19, the PRA’s final policy is as consulted on.

The PRA’s final policy comes into effect on publication of PS4/20.