Explain the Principles for the management and supervision of liquidity risk as given in the ‘Principles for Sound Liquidity Risk Management and Supervision’ by the Basel Committee on Banking Supervision?

The 'Principles for Sound Liquidity Risk Management and Supervision' by the Basel Committee on Banking Supervision provides a framework for effective management and supervision of liquidity risk. The principles are designed to ensure that banks have sufficient liquidity to meet their obligations under both normal and stressed conditions. The following are the key principles for the management and supervision of liquidity risk:

1. Governance and Strategy: The first principle emphasizes the importance of having a clear governance structure and sound liquidity risk management strategy in place. ________ __________ ______ __________ ________ _________ ___.
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