Risk Management: Liquidity Risk for Banks

Effective liquidity risk management is essential for the stability and resilience of financial institutions. This training provides banking professionals with a clear understanding of how liquidity risk manifests and impacts bank operations, the regulatory landscape, and the main tools and techniques necessary to measure and monitor liquidity risk. Through practical examples and real-world insights, participants will deepen their knowledge of liquidity risk and enhance their capacity to anticipate and respond to funding and market liquidity challenges.

By the end of this course, participants will be able to : 

• Understand the nature and drivers of liquidity risk in banking

• Review key regulatory requirements and supervisory expectations

• Explore tools and methodologies for measuring and monitoring liquidity risk

• Introduction

• Asset liquidity risk

  • Collateral management

  • Tightness

  • Depth

  • Resilience

  • Immediacy

• Funding liquidity risk

  • Diversification

  • Cliff effects

  • Deposits

• Intraday Liquidity Risk Management

• Liquidity Risk measurement

  • LVaR

  • Balance sheet analysis

  • Ratio approach

  • Monitoring tools

  • Stress testing

  • Liquidity gaps

• Contingency funding plan

• Fund Transfer Pricing (FTP) Systems

• Future trends 

Banking professionals seeking an advanced risk management certification with 5 years + of experience in the financial industry.

It is possible to include a final exam at the end of this training course.