Pursuant to section 10 (1) of the ordinance on the liquidity of institutions (Ordinance on Liquidity; Liquiditätsverordnung), which entered into force on 1 January 2007, institutions may, at their discretion on a permanent basis and with the prior consent of the Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht, hereinafter referred to as BaFin), use internal liquidity risk measurement and management systems (for short: liquidity models).A liquidity model thus requires approval from BaFin.
These guidelines provide forthcoming applicants with information on the application and approval process.
