avantage Capita Business Breakfast on Liquidity Risk Management for Banks
On 10 February 2009, avantage Capita and the British Bankers’ Association (BBA) conducted a business breakfast event at the BBA discussing practical issues in managing liquidity risk in banks and building societies with a particular focus on the latest regulatory developments.
The event comprised two presentations. The first was given by Simon Hills of the BBA entitled Liquidity Regulation - latest developments. Simon provided an insightful evaluation of the background and events that have led to the publication by the FSA of their consultation paper CP 08 / 22 – Strengthening Liquidity Standards.
This was followed by a brief outline of the aims and major new initiatives introduced by CP 08 / 22 with particular focus on the Individual Liquidity Adequacy Standards (“ILAS”). Simon concluded with an assessment of the most significant implications of the ILAS for individual institutions.
The second presentation was given by Nigel Walker and focused in detail on liquidity risk stress testing and the need to ensure that an institution’s liquidity risk appetite is sufficiently well defined to enable the results of stress tests to be evaluated and that day to day liquidity risk management decisions to mitigate identified exposures are driven from that evaluation.
The event concluded with a question and answer session involving the two speakers, facilitated by Oleg Lebedev who had also given the introduction to the event.
You can download a copy of Simon Hills' presentation here and Nigel Walker's presentation here.
