Assets controlled by a liquidity management function

Article 417(c) of Regulation (EU) No. 575/2013 (CRR) states that liquid assets, which fulfil the conditions set out in Article 416(3), shall be controlled by a liquidity management function. In order to ensure effective monetisation in case liquidity outflows have to be met through the liquidation of liquid assets, these need to be under the control of a liquidity management function. In this respect larger institutions may have more than one such function. Such a function should have the continuous authority, and legal and operational capability, to monetise any asset in the stock in case needed and the proceeds shall be readily available to the function. Further, under Article 509(5)(c) of the CRR, the EBA published a report on the operational requirements for the holdings of liquid assets which  concludes in a similar way that assets of extremely high and high liquidity and credit quality do not have to be held in a separate book to fulfil this operational requirement.