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…
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…
Liquidity Stress Testing
After completing this reading, you should be able to: Differentiate between various types of liquidity, including funding, operational, strategic, contingent, and restricted liquidity. Estimate contingent liquidity via the liquid asset buffer. Discuss the matters about the liquidity stress test design,…
Intraday Liquidity Risk Management
After completing this reading, you should be able to: Identify and explain the uses and sources of the Intraday liquidity Discuss the governance structure of the intraday risk liquidity management Differentiate between methods for tracking intraday flows and monitoring risk…
The Investment Function in Financial-services Management
After completing this reading, you should be able to: Compare various money market and capital market instruments and discuss their advantages and disadvantages. Identify and discuss various factors that affect the choice of investment securities by a bank. Apply…
Liquidity Risk Reporting and Stress Testing
After completing this reading, you should be able to: Identify best practices for the reporting of a bank’s liquidity position. Compare and interpret different types of liquidity risk reports. Explain the process of reporting a liquidity stress test and interpret…
Managing And Pricing Deposit Services
After completing this reading, you should be able to: Differentiate between the various transaction and non-transaction deposit types. Compare different methods used to determine the pricing of deposits and calculate the price of a deposit account using cost plus profit…
