Liquidity Risk Management Under The Basel Accords

Liquidity Risk Management under the Basel Accords

What you'll learn

Grasp the fundamentals of liquidity risk, its potential pitfalls for financial institutions, and the critical role of Basel III & IV regulations in taming it.

Dive deep into the core liquidity requirements of Basel III, including the Liquidity Coverage Ratio (LCR) and the Net Stable Funding Ratio (NSFR).

Equip yourself with advanced techniques for measuring liquidity risk, forecasting cash flows, and conducting stress tests.

Implement best practices for fortifying your institution against liquidity risk.

Requirements

No prerequisites

Description

This intensive program empowers you with the knowledge and skills to navigate the complexities of liquidity risk management within the Basel III and IV frameworks. Designed for both beginners and seasoned professionals, it delves deep into the essential tools and techniques for ensuring your financial institution remains resilient in the face of market turbulence.Key Focus:Demystifying Liquidity Risk: Gain a comprehensive understanding of liquidity risk, its impact on financial stability, and the role of Basel III and IV regulations in mitigating it.Unveiling Basel Liquidity Frameworks: Dive into the core liquidity requirements of Basel III, including the Liquidity Coverage Ratio (LCR) and the Net Stable Funding Ratio (NSFR), and understand their practical implications for managing short- and long-term funding needs.Mastering Measurement and Monitoring: Learn advanced techniques for measuring liquidity risk, forecasting cash flows, and conducting stress testing to anticipate and mitigate potential disruptions.Developing Effective Risk Management Strategies: Implement best practices for managing liquidity risk, including contingency planning, diversification of funding sources, and optimizing asset-liability structures.Embracing the Leverage Ratio: Analyze the Basel IV Leverage Ratio and its impact on liquidity risk management, ensuring compliance and optimizing capital allocation.Staying Ahead of the Curve: Keep abreast of the latest developments in Basel regulations and their influence on liquidity risk management practices.Learning Outcomes:Confidently explain the role of Basel III and IV in managing liquidity risk.Apply advanced measurement and monitoring techniques to assess liquidity positions.Develop and implement effective liquidity risk management strategies aligned with Basel regulations.Make informed decisions regarding funding sources, asset-liability management, and capital allocation.Adapt to the evolving regulatory landscape and ensure compliance with Basel IV requirements.

Overview

Section 1: Introduction to Basel III

Lecture 1 Introduction to Basel III

Lecture 2 Highlights of Basel III

Section 2: Basel III Liquidity Risk

Lecture 3 Liquidity Risk and Liquidity Risk Management

Lecture 4 Developments that Led to the 2008 Financial Crisis and the regulatory response

Lecture 5 Leverage and Liquidity Risk

Lecture 6 Objectives of the LCR and Calculation of the LCR

Lecture 7 High Quality Liquid Assets

Lecture 8 Cash Flow Measurement

Lecture 9 LCR Implementation Timeline

Lecture 10 Overview of the NSFR

Lecture 11 Available and Required Stable Funding

Section 3: Basel III Leverage Ratio

Lecture 12 Leverage Ratio

Risk Analysts,Investment Bankers,Internal Auditors,Regulatory Compliance Officers,Treasury Professionals,Financial Risk Managers,Students and Graduates