Rules for the management of market and liquidity risks
The principal rules for the management of market and liquidity risks are defined in the Asset/Liability Management Policy.
The Bank operates a clear separation of responsibilities for market and liquidity risks, covering:
Supervision of the above-mentioned activities related to entering into transactions, and independent risk measurement and reporting is distributed up to the Member of the Management Board level, which ensures full independence of their activity.
In addition to particular organisational units, an active part in the market and liquidity risk management is played by the Supervisory Board and the Management Board of the Bank, as well as the Capital, Assets and Liabilities Management Committee (CALCO).
Exposure to market and liquidity risks is limited by a system of limits which are periodically updated by resolution of the Supervisory Board or the CALCO Committee, covering all risk metric, whose level is monitored and reported by the Bank’s organisational units independent from the business.
The Bank operates three types of limit, depending on their scope and method of action: core limits (established on the Supervisory Board level), supplementary limits, additional limits.