MANAGING LIQUIDITY RISK: EMERGING ISSUES AND CHALLENGES FOR FINANCIAL REGULATORS AND SUPERVISORS – 14th to 18th May 2018
Date: 14th to 18th May 2018.
This workshop aim to walk participant through the intricate walking of the fundamental features of a sustainable and fit for purpose liquidity risk may enhance the management process including aligning same with the most resent requirement of the Basel II and III frameworks. The workshop will further enrich the knowledge base and enhance the overall capacity of those who supervise both banking and non banking financial services sector, to equip them with requisite tools and techniques, and expose them to global best practices, in particular with regards to supervising insured deposit-taking institutions.
Recent disruptions in the credit and capital markets have exposed weaknesses in liquidity risk measurement and management systems throughout the entire interconnected global financial system. Institutions using liability based or off balance sheet funding strategies or experiencing other complex liquidity risk exposures are increasingly measuring liquidity risk using pro- formal cash flows scenario analysis as part of their contingency funding plans. Such contingencies funding inability to securities assets, tightening of collateral requirement or other restrictive or terms associated with secured borrowings or the loss of a large depositor or counterparty as integral features of their liquidity risk management.
The workshop will address the following essential topics:
- Review and analysis of the global Financial crises and highlight of the new regulatory paradigm-the macro prudential approach to regulation: Basel III frame work and enhance tools and powers for mitigation of systemic risk: corporate governance, stress testing and new counter cyclical measures.
- Overview of financial risk management, types, courses and pricing of liquidity risk
- Measurement and management of liquidity risk and asset liquidity, tools and techniques and the role of supervisors
- Ensuring liquidity risk measurement tools are aligned to business strategy
- Steps and measures to promote a proactive approach to liquidity planning: the contingency funding plan (CFP)
- Evaluating and institution ability to maintain access to funds and liquidate assets in a reasonable and course efficient manner
- How to ensure contingency funding plans outline practical and realistic funding alternative that can be implemented as access to funding is reduced, including diversification of funding and capital raising initiatives.
- How to ensure that institutions that use volatile, credit sensitive, or concentrated funding sources and maintained capital above the regulatory minimum levels to compensate for the elevated levels of liquidity risk present in their occupation
- Impact of Basel II and III frame works on liquidity risk management
- Basel principles for sound liquidity risk management and supervision
- Fundamental principles for the management and supervision of liquidity risk
- Governance of liquidity risk management
- Beyond Basel: new issues and challenges for regulation and supervision
- Visit to relevant agencies and institutions
- Reflective practice