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UK prudential watchdog pledges to modernize liquidity framework

( March 17, 2026, 14:34 GMT | Official Statement) -- MLex Summary: Banks, building societies and investment firms have been asked for their views on an updated liquidity framework from the UK Prudential Regulation Authority. The regulator said on Tuesday that the existing liquidity policy framework does not provide sufficient details on the specific aspects that firms should consider in managing liquidity outflows in a stress. The PRA said the new framework will strengthen firms’ internal stress-testing approaches and controls and enhance their operational readiness to deal with future liquidity shocks.Statement is attached....

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