The 2008 global financial crisis brutally exposed the failings of a capital-centric Basel II 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.
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, including:
- The policy infrastructure: Liquidity Risk Management Policy, Funding Strategy, Liquidity Risk Appetite and Liquidity Contingency Planning, Liquidity stress-testing and reverse stress-testing
- Process documentation and implementation
- Intra-day liquidity risk management
- Risk tolerance monitoring, including LCR and NSFR
- Funds Transfer Pricing or FTP, including liquidity risk pricing
- Liquidity buffer optimisation
- ILAAP-ICAAP harmonisation
- Board and Senior Management Workshops