Liquidity and Reserves Management: Strategies and Policies
After completing this reading, you should be able to: Calculate a bank’s net liquidity position and explain factors that affect the supply and demand for liquidity at a bank. Compare the strategies that a bank can use to meet demands…
Current Issues in Financial Markets
1. Review of the Federal Reserve’s Supervision and Regulation of Silicon Valley Bank 2. The Credit Suisse CoCo Wipeout: Facts, Misperceptions, and Lessons for Financial Regulation. 3. Artificial Intelligence and Bank Supervision 4. Financial Risk Management and Explainable, Trustworthy, Responsible…
Supervisory Guidance on Model Risk Management
After completing this reading, you should be able to: Describe model risk and explain how model risk can arise in the implementation of a model. Describe elements of an effective process to manage model risk. Explain the best practices for…
Cyber-resilience: Range of Practices
After completing this reading, you should be able to: Define cyber-resilience and compare recent regulatory initiatives in the area of cyber-resilience. Describe current practices by banks and supervisors in the governance of a cyber risk management framework, including roles and…
Sound Management of Risks Related to Money Laundering and Financing of Terrorism
After completing this reading, the candidate should be able to: Explain best practices recommended by the Basel Committee for the assessment, management, mitigation and monitoring of money laundering and financial terrorism (ML/FT) risks. Describe recommended practices for the acceptance, verification…
Hedge Funds
After completing this reading, you should be able to: Explain biases that are commonly found in databases of hedge funds. Explain the evolution of the hedge fund industry and describe landmark events that precipitated major changes in the development…
The U.S. Dollar Shortage in Global Banking and the International Policy Response
After completing this reading, you should be able to: Identify the causes of the U.S. Dollar shortage during the Great Financial Crisis. Evaluate the importance of assessing maturity/currency mismatch across the balance sheets of consolidated entities. Discuss how central bank…
Contingency Funding Planning
After completing this reading, you should be able to: Discuss the relationship between contingency funding plan and liquidity stress testing. Evaluate the key design considerations of a sound contingency funding plan. Assess the key components of a contingency funding plan…
Monitoring Liquidity
After completing this chapter, you should be in a position to: Distinguish between deterministic and stochastic cash flows and provide examples of each. Describe and provide examples of liquidity options and explain the impact of liquidity options on a bank’s…
Early Warning Indicators
After completing this reading, you should be able to: Evaluate the characteristics of sound Early Warning Indicators (EWI) measures. Identify EWI guidelines from banking regulators and supervisors (OCC, BCBS, Federal Reserve). Discuss the applications of EWIs in the context of…
