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Liquidity Risk Management and Basel III
The 2008 global financial crisis brutally exposed the failings of a capital-centric regulatory regime.
Liquidity risk management is now recognised as being equally important to the sustainability of financial institutions and systems.
Around the globe, many governments, central banks and institutions are trying to find the balance between the socially
desirable maturity transformation functions of banks and the socially undesirable effects of banks taking too much liquidity risk.
And many UK firms have still to fully embed the new process-system infrastructures and MI necessary to fully evidence
compliance with the new FSA liquidity regime.
KnowCo has proven, practical tools and methodologies to help financial institutions to better define and manage
liquidity risk. We have supported institutions in all relevant areas:
- The policy infrastructure: Liquidity Risk Management Policy; Funding Strategy, Liquidity Risk Appetite and Contingency Funding Plan
- Liquidity stress-testing and reverse stress-testing
- Process documentation and implementation
- Intra-day liquidity risk management
- Risk tolerances monitoring, including LCR and NSFR
- Liquidity risk pricing (aka funds transfer pricing or FTP
- Collateral management and buffer optimisation
- ILAA-ICAAP harmonisation
- Board and Senior Management Awareness Workshops
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