Liquidity risk has always been a core focus for banks. But in the Gulf Cooperation Council (GCC), a wave of regulatory changes is forcing even the most resilient institutions to reassess how they manage, monitor, and forecast their liquidity positions. This isn’t just about ticking compliance boxes anymore—it’s about building a competitive edge in a rapidly evolving banking environment.
Regulation is Moving Fast—and Local
While international standards like Basel III and the Liquidity Coverage Ratio (LCR) set the tone globally, GCC regulators are adding their own local flavour. Central banks across the region—such as SAMA (Saudi Arabia), the UAE Central Bank, and the Central Bank of Bahrain—are tightening supervision, refining liquidity stress testing expectations, and increasing transparency requirements.
Banks are being asked to deliver more granular, online data, often with shorter reporting cycles and more detailed breakdowns. The focus is shifting from historical reporting to forward-looking capabilities—and that changes the game.
Common Challenges in the Region
Across the GCC, many banks are still managing liquidity on fragmented systems or spreadsheets. While these setups may have worked under looser requirements, they’re no match for today’s pace and complexity. We’ve seen recurring pain points:
- Siloed data sources slowing down decision-making.
- Limited scenario analysis for stress testing and contingency planning.
- Inflexible legacy systems that can’t adapt quickly to changing regulations.
- Manual processes that increase operational risk and reduce visibility.
In a regulatory environment where speed and accuracy are key, these bottlenecks are no longer acceptable.
What Good Looks Like: A Treasury-First Approach
Best-in-class liquidity management starts in the Treasury. It’s where risk, funding, and compliance intersect—and where a single platform can give full visibility and control. Here’s what banks in the GCC should aim for:
- Online liquidity dashboards that give Group Treasury and Risk teams full visibility, right down to the entity or branch level.
- Integrated cash flow forecasting to anticipate funding needs and stress scenarios.
- Built-in regulatory templates for local compliance—whether it’s SAMA’s Liquidity Coverage Ratio or UAE’s Net Stable Funding Ratio.
- Automated intraday monitoring to stay ahead of both operational and regulatory risk.
Why It Matters Now
With oil price volatility, regional geopolitical uncertainty, and rapid digital transformation, GCC banks face a liquidity landscape that’s anything but stable. At the same time, regulators are becoming more proactive, expecting banks to demonstrate robust liquidity governance—backed by data and technology.
The good news? Banks that take liquidity seriously don’t just stay compliant—they gain a strategic advantage. Better visibility means better pricing decisions, more efficient funding, and stronger risk management. In short, it’s good business.
How MORS Can Help
At MORS, we’ve worked with banks across Europe and beyond to streamline liquidity risk management—from regulatory compliance to proactive strategy. Our solution gives you a view of your liquidity position and integrated forecasting.