Mastering Liquidity Risk: Basel III & Beyond
- Description
- Curriculum
- FAQ
- Reviews
Embark on a secure and comprehensive learning journey into the complex world of liquidity risk management with this course.
Understand the causes and consequences of the 2008 financial crisis, and learn how the transformative Basel III framework has revolutionized how banks approach liquidity risk, enlightening you with the latest industry insights.
Master the critical tools like the
-
Liquidity Coverage Ratio (LCR),
-
Net Stable Funding Ratio (NSFR) and
-
Leverage Ratio through clear explanations, practical examples, and calculations.
Develop the skills to assess the liquidity risk profile of any financial institution and contribute to its long-term resilience.
This course is an essential guide for risk professionals, banking students, and anyone interested in understanding the foundations of financial stability.
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.
-
1
Understanding Liquidity RiskDefinition and importance of liquidity risk
Consequences of poor liquidity risk management
Overview of the Basel III framework and its focus on liquidity risk
-
2
The 2008 Financial Crisis and its Impact on Liquidity Risk
Key developments that contributed to the crisis
The role of leverage and liquidity risk in the crisis
Regulatory response and the introduction of Basel III
-
3
Leverage and Liquidity Risk
The relationship between leverage and liquidity risk
Understanding embedded leverage and its impact on risk
Importance of managing leverage to mitigate liquidity risk
-
4
Objectives and Calculation of the LCR
Purpose and benefits of the LCR
Calculation methodology and key components
Stress scenario considerations and the 30-day time horizon
-
5
High-Quality Liquid Assets (HQLA)
Characteristics and criteria for HQLA
Tiered approach for defining HQLA (Level 1, 2A, and 2B assets)
Haircuts and limitations on different asset classes
-
6
Cash Flow Measurement
Calculation of expected cash inflows and outflows
Application of inflow caps and stress factors
Determining the total net cash outflow
-
7
LCR Implementation Timeline
Phased implementation approach and regulatory expectations
Importance of gradual implementation for financial stability
-
8
Overview and Objectives of the NSFR
Purpose and benefits of the NSFR
Focus on long-term resilience and structural changes
Calculation methodology and minimum requirement
-
9
Available Stable Funding (ASF) & Required Stable Funding (RSF)
Definition and components of ASF
ASF factors and their implications for stability
Importance of capital and stable deposits
Definition and components of RSF
RSF factors and their implications for stability
On-balance sheet and off-balance sheet considerations
