A liquidity contingency plan is another name for a contingency funding plan, the document in which a bank or other financial firm sets out how it would respond to a shortage of funding. The main entry describes its contents and the regulatory expectations; this entry notes how the alternative name is used.
Both terms describe the same thing. "Contingency funding plan" is the wording of the Basel Committee's liquidity principles and of most bank regulators. "Liquidity contingency plan" appears in the rules and guidance of some national authorities, in insurance and asset management, and in corporate treasury, where a non-financial company plans for the loss of bank lines or market access. The plan identifies early warning indicators, defines levels of escalation, lists the sources of funds that could be drawn on and in what order, such as selling or pledging assets from the liquidity buffer, and assigns responsibilities and communication duties.
The plan is built on the results of liquidity stress testing, is tested periodically, and forms part of wider liquidity risk management. It is narrower than recovery planning, which covers capital as well as liquidity and more severe situations.