Managing Liquidity In Banks

Author : Rudolf Duttweiler
Publisher : John Wiley & Sons
Page : 319 pages
File Size : 52,6 Mb
Release : 2011-11-09
Category : Business & Economics
ISBN : 9781119991090

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Managing Liquidity in Banks by Rudolf Duttweiler Pdf

"Liquidity risk is a topic growing immensely in importance in risk management. It has been much neglected by financial institutions and regulators in recent years and receives, in the course of the sub-prime crisis, sudden and great attention. This book is well-structured and provides a comprehensive and systematic approach to the topic. It will help risk controllers to systematically set up a liquidity risk framework in their bank." —Peter NEU, European Risk Team Leader, The Boston Consulting Group, and co author of Liquidity Risk Measurement and Management "Mr Duttweiler's book is a welcome addition to the literature on liquidity risk measurement and management. In addition to his contributions to liquidity risk theory and liquidity pricing, the author provides a good overview of all of the critical elements." —Leonard Matz, International Solution Manager, Liquidity Risk and co-author of Liquidity Risk Measurement and Management Liquidity Risk Management has gained importance over recent years and particularly in the last year, as major bank failures have led to a re-evaluation of the significance of liquidity in stressed market conditions. Liquidity risk is closely related to market risk and solvency, suggesting its significance in times of volatile and 'bear' markets, where a single bank's failure can have dramatic effects on market liquidity. The term liquidity is not well-define, and a comprehensive understanding of its common elements is often missing within a banking organisation. In too many cases, liquidity risk management has not been developed with a coherent framework and generally accepted terms and methods, creating weaknesses in its structure and vulnerability to market risk. In this title, Duttweiler advances the study of quantitative liquidity risk management with the concept of the 'Liquidity Balance Sheet', which allocates portfolios into a specific structure, and consequently is able to account for potentially negative surprises so that the necessary buffers can be quantified. The book begins with an overview of liquidity as part of financial policy and highlights the importance of liquidity as part of a general business concept and as protector and supporter of a business as a going concern. The author examines the role o liquidity in helping managers to achieve high-level liquidity aims to support operating units to achieve business goals. He looks at quantitative methods of assessing a banks liquidity levels, including LaR and VaR, to establish an integrated concept in which liquidity is incorporated into the framework of financial policies. He also presents methods, tools, scenarios and concepts to create a policy framework for liquidity and to support contingency planning.

Author : Roberto Ruozi,Pierpaolo Ferrari
Publisher : Springer Science & Business Media
Page : 59 pages
File Size : 47,7 Mb
Release : 2012-09-20
Category : Business & Economics
ISBN : 9783642295812

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Liquidity Risk Management in Banks by Roberto Ruozi,Pierpaolo Ferrari Pdf

The recent turmoil on financial markets has made evident the importance of efficient liquidity risk management for the stability of banks. The measurement and management of liquidity risk must take into account economic factors such as the impact area, the timeframe of the analysis, the origin and the economic scenario in which the risk becomes manifest. Basel III, among other things, has introduced harmonized international minimum requirements and has developed global liquidity standards and supervisory monitoring procedures. The short book analyses the economic impact of the new regulation on profitability, on assets composition and business mix, on liabilities structure and replacement effects on banking and financial products.​

Author : Shyam Venkat,Stephen Baird
Publisher : John Wiley & Sons
Page : 309 pages
File Size : 46,6 Mb
Release : 2016-03-28
Category : Business & Economics
ISBN : 9781118881927

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Liquidity Risk Management by Shyam Venkat,Stephen Baird Pdf

The most up-to-date, comprehensive guide on liquidity risk management—from the professionals Written by a team of industry leaders from the Price Waterhouse Coopers Financial Services Regulatory Practice, Liquidity Risk Management is the first book of its kind to pull back the curtain on a global approach to liquidity risk management in the post-financial crisis. Now, as a number of regulatory initiatives emerge, this timely and informative book explores the real-world implications of risk management practices in today's market. Taking a clear and focused approach to the operational and financial obligations of liquidity risk management, the book builds upon a foundational knowledge of banking and capital markets and explores in-depth the key aspects of the subject, including governance, regulatory developments, analytical frameworks, reporting, strategic implications, and more. The book also addresses management practices that are particularly insightful to liquidity risk management practitioners and managers in numerous areas of banking organizations. Each chapter is authored by a Price Waterhouse Coopers partner or director who has significant, hands-on expertise Content addresses key areas of the subject, such as liquidity stress testing and information reporting Several chapters are devoted to Basel III and its implications for bank liquidity risk management and business strategy Includes a dedicated, current, and all-inclusive look at liquidity risk management Complemented with hands-on insight from the field's leading authorities on the subject, Liquidity Risk Management is essential reading for practitioners and managers within banking organizations looking for the most current information on liquidity risk management.

Author : Leonard M. Matz
Publisher : Sheshunoff
Page : 746 pages
File Size : 47,8 Mb
Release : 1999
Category : Business & Economics
ISBN : PSU:000046807496

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Liquidity Risk Management by Leonard M. Matz Pdf

Author : Hennie van Greuning,Sonja Brajovic Bratanovic
Publisher : World Bank Publications
Page : 399 pages
File Size : 41,6 Mb
Release : 2020-06-10
Category : Business & Economics
ISBN : 9781464815188

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Analyzing Banking Risk (Fourth Edition) by Hennie van Greuning,Sonja Brajovic Bratanovic Pdf

Analyzing Banking Risk: A Framework for Assessing Corporate Governance and Risk Management provides a comprehensive overview of topics focusing on assessment, analysis, and management of financial risks in banking. The publication emphasizes risk management principles and stresses that key players in the corporate governance process are accountable for managing the different dimensions of financial and other risks. This fourth edition remains faithful to the objectives of the original publication. It covers new business aspects affecting banking risks, such as mobile banking and regulatory changes over the past decade—specifically those related to Basel III capital adequacy concepts—as well as new operational risk management topics such as cybercrime, money laundering, and outsourcing. This publication will be of interest to a wide body of users of bank financial data. The target audience includes the persons responsible for the analysis of banks and for the senior management or organizations directing their efforts. Because the publication provides an overview of the spectrum of corporate governance and risk management, it is not aimed at technical specialists of any particular risk management area. *** Hennie van Greuning was formerly a Senior Adviser in the World Bank’s Treasury Unit and previously worked as a sector manager for financial sector operations in the World Bank. He has been a partner in a major international accounting firm and a controller and head of bank supervision in a central bank. Since retiring from the World Bank, he has chaired audit, ethics, and risk committees in various banks and has been a member of operational risk and asset-liability management committees. Sonja Brajovic Bratanovic was a Lead Financial Sector Specialist at the World Bank, after a career as a senior official in a central bank. With extensive experience in banking sector reforms and financial risk analysis, she led World Bank programs for financial sector reforms, as well as development projects. Since her retirement, she has continued as a senior consultant for World Bank development projects in the financial sector, as well as an advisor for other development institutions.

Author : Leonard Matz,Peter Neu
Publisher : John Wiley & Sons
Page : 413 pages
File Size : 43,9 Mb
Release : 2006-11-10
Category : Business & Economics
ISBN : 9780470821824

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Liquidity Risk Measurement and Management by Leonard Matz,Peter Neu Pdf

Major events such as the Asian crisis in 1997, the Russian default on short-term debt in 1998, the downfall of the hedge fund long-term capital management in 1998 and the disruption in payment systems following the World Trade Center attack in 2001, all resulted in increased management’s attention to liquidity risk. Banks have realized that adequate systems and processes for identifying, measuring, monitoring and controlling liquidity risks help them to maintain a strong liquidity position, which in turn will increase the confidence of investors and rating agencies as well as improve funding costs and availability. Liquidity Risk Measurement and Management: A Practitioner’s Guide to Global Best Practices provides the best practices in tools and techniques for bank liquidity risk measurement and management. Experienced bankers and highly regarded liquidity risk experts share their insights and practical experiences in this book.

Author : Antonio Castagna,Francesco Fede
Publisher : John Wiley & Sons
Page : 600 pages
File Size : 45,7 Mb
Release : 2013-09-03
Category : Business & Economics
ISBN : 9781119990246

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Measuring and Managing Liquidity Risk by Antonio Castagna,Francesco Fede Pdf

A fully up-to-date, cutting-edge guide to the measurement and management of liquidity risk Written for front and middle office risk management and quantitative practitioners, this book provides the ground-level knowledge, tools, and techniques for effective liquidity risk management. Highly practical, though thoroughly grounded in theory, the book begins with the basics of liquidity risks and, using examples pulled from the recent financial crisis, how they manifest themselves in financial institutions. The book then goes on to look at tools which can be used to measure liquidity risk, discussing risk monitoring and the different models used, notably financial variables models, credit variables models, and behavioural variables models, and then at managing these risks. As well as looking at the tools necessary for effective measurement and management, the book also looks at and discusses current regulation and the implication of new Basel regulations on management procedures and tools.

Author : Moorad Choudhry
Publisher : John Wiley & Sons
Page : 868 pages
File Size : 47,9 Mb
Release : 2022-09-22
Category : Business & Economics
ISBN : 9781119755685

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The Principles of Banking by Moorad Choudhry Pdf

A timely and robust discussion of responsible bank stewardship and practice. The Second Edition of The Principles of Banking offers banking professionals, regulators, and students from a variety of backgrounds an authoritative and practical discussion of the foundations of modern banking and good banking practice. In the book, you'll find a comprehensive roadmap to a more sustainable business model for your banking organization. The author draws on his many years' experience as a commercial and investment banker as he explains the original principles of banking—including sound lending policy, capital management, and liquidity risk management—as well as new material covering the impact of COVID-19 on banks, risk management, and balance sheet management. The Principles of Banking also provides recommendations for bank asset-liability management best practices that enable banks to deliver optimized balance sheets for the benefit of all stakeholders. It also includes new chapters in market risk management, foreign exchange risk management, interest rate risk, and credit risk policy and management. An essential update to a widely read and taught banking text, The Principles of Banking, Second Edition is an indispensable resource for banking professionals and students everywhere.

Author : Aldo Soprano
Publisher : John Wiley & Sons
Page : 213 pages
File Size : 40,9 Mb
Release : 2015-05-04
Category : Business & Economics
ISBN : 9781118413999

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Liquidity Management by Aldo Soprano Pdf

Robust management of liquidity risk within the changing regulatory framework Liquidity Management applies current risk management theory, techniques, and processes to liquidity risk control and management to help organizations prepare in case of future economic crisis and changing regulatory framework. Based on extensive research conducted on banks' datasets, this book addresses the practical challenges and critical issues that frequently go unmentioned, and discusses the recent impact of sovereign crises on banks' liquidity processes and approaches. Market practices and regulatory stances are reviewed and compared to bank treasuries' response to liquidity crunches, refinancing risks are explored in the context of Basel 3, and alternative funding is analyzed in terms of resilience and allocation. Coverage includes the recent crisis, new regulations, and the techniques, processes, and strategies banks use in managing liquidity risk. The 2008 and 2010 crises brought liquidity risk out of the shadows as even profitable and well-capitalized banks were swept away with breathtaking speed. This book reviews modeling and internal process design in the context of the structural change in market conditions on banks' refinancing and control requirements, helping readers rethink and re-design their organization's approach to liquidity risk. Understand the new liquidity regulatory framework and the implications for banks Study the latest liquidity measurement models, with stress testing and scenario analysis Discover the effect of illiquid financing markets and possible lasting impacts Compare market liquidity and warning signals that detect further deterioration With much of the world still reeling from history, it's important that liquidity risk become a major focus going forward. This practical guide provides valuable information, but also real, actionable steps that can be taken today to forecast and mitigate risks with an eye toward greater stability and security. Liquidity Management is a thorough, comprehensive guide to a more robust management of liquidity risk.

Author : Ademola Ariyo
Publisher : Unknown
Page : 218 pages
File Size : 40,9 Mb
Release : 2005
Category : Business & Economics
ISBN : STANFORD:36105127438427

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Liquidity Management in Nigeria by Ademola Ariyo Pdf

A solid and stable financial sector is essential to any functioning national economy and to ensuring balanced liquidity within the economy. Appropriate liquidity management is a de facto condition of price and foreign exchange control, stability, and economic growth. Despite establishing regulatory agencies and monetary policies, Nigeria has actually been suffering excess liquidity for a period of some time. There is a basic knowledge gap in the causes and nature of this feature of the economy, and the likely institutional deficiencies. Most seriously, there is severe lack of reliable national economic data and statistics, a problem that is hampering all aspects of economic planning and growth. This book aims to fill these gaps.

Author : E. Banks
Publisher : Springer
Page : 300 pages
File Size : 55,5 Mb
Release : 2013-11-06
Category : Business & Economics
ISBN : 9781137374400

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Liquidity Risk by E. Banks Pdf

Liquidity Management is now a core consideration for banks and other financial institutions following the collapse of numerous well-known banks in 2007-8. This timely new edition will provide practical guidance on liquidity risk and its management – now mandatory under new regulation.

Author : Leonard Matz
Publisher : Xlibris Corporation
Page : 400 pages
File Size : 52,5 Mb
Release : 2011-07-20
Category : Business & Economics
ISBN : 9781462892457

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Liquidity Risk Measurement and Management by Leonard Matz Pdf

Villains for the Great Meltdown of 2007-2008 seem plentiful. But the very concept of finding and punishing villains misses the target. Ideally, we learn from past failures. We perfect our craft. Lessons to be learned from the Great Meltdown are not just plentiful - they are also insightful. In LIQUIDITY RISK MEASUREMENT AND MANAGENT -- BASEL III AND BEYOND, Mr. Matz provides detailed, practical analysis and recommendations covering every aspect of liquidity risk measurement and management. * Examples of what went wrong are used extensively. * Best practices procedures are explained. * New regulatory guidance - both qualitative and quantitative, including Basel III - is discussed in detail.* Source material and examples from many countries are included.This is the "how to guide" for liquidity risk managers in financial institutions around the globe.

Author : Gudni Adalsteinsson
Publisher : John Wiley & Sons
Page : 216 pages
File Size : 45,5 Mb
Release : 2014-05-08
Category : Business & Economics
ISBN : 9781118858011

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The Liquidity Risk Management Guide by Gudni Adalsteinsson Pdf

Liquidity risk is in the spotlight of both regulators andmanagement teams across the banking industry. The European bankingregulator has introduced and implemented a stronger liquidityregulatory framework and local regulators have made liquidity a toppriority on their supervisory agenda. Banks have accordinglyfollowed suit. Liquidity risk is now a topic widely discussedin boardrooms as banks strive to set up a strong and efficientliquidity risk management framework which, while maintainingsufficient resources, does not jeopardize the necessaryprofitability and return targets. The Liquidity Risk Management Guide: From Policy toPitfalls is practical guide for banks and risk professionals toproactively manage liquidity risk in a systemic way. The booksets out its own comprehensive framework, which includes all thevarious and critical components of liquidity risk management. The recommendations are based on experiences from the recentfinancial crises, best practices and compliance with current andfuture regulatory requirements, with special emphasis on BaselIII. Using the new 6 Step Framework, the book provides step-by-stepguidance for the reader to build their liquidity managementframework into a new overarching structure, which brings all thedifferent parts of liquidity risk into one approach. Specialattention is given to the challenges that banks currently face whenadopting and implementing the Basel III liquidity requirements andguidance is given on how the new metrics can be integrated into theexisting framework, providing the most value to the banks insteadof being a regulatory reporting matter.

Author : E. Banks
Publisher : Springer
Page : 230 pages
File Size : 44,6 Mb
Release : 2004-09-24
Category : Business & Economics
ISBN : 9780230508118

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Liquidity Risk by E. Banks Pdf

Much critical attention has been given in recent years to market and credit risks, which have a significant effect on corporate and financial operations and must be understood and managed with care. While these areas have rightly received considerable scrutiny, another critical dimension of financial risk - based on corporate liquidity - has been largely overlooked. Liquidity risk is the risk of loss arising from an inability to quickly realise asset value or obtain funding and can be damaging if not properly considered or actively managed. Lack of liquidity can lead to large losses in asset/liability portfolios and off balance sheet activities and in extreme cases can trigger financial distress and insolvency. Liquidity Risk is a comprehensive treatment of the topic focusing on the nature of the risk, problems that arise in asset and funding liquidity and mechanisms that can be developed to monitor, measure and control such risks.

Author : Mr.Lev Ratnovski
Publisher : International Monetary Fund
Page : 41 pages
File Size : 51,7 Mb
Release : 2013-01-18
Category : Business & Economics
ISBN : 9781475536157

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Liquidity and Transparency in Bank Risk Management by Mr.Lev Ratnovski Pdf

Banks may be unable to refinance short-term liabilities in case of solvency concerns. To manage this risk, banks can accumulate a buffer of liquid assets, or strengthen transparency to communicate solvency. While a liquidity buffer provides complete insurance against small shocks, transparency covers also large shocks but imperfectly. Due to leverage, an unregulated bank may choose insufficient liquidity buffers and transparency. The regulatory response is constained: while liquidity buffers can be imposed, transparency is not verifiable. Moreover, liquidity requirements can compromise banks' transparency choices, and increase refinancing risk. To be effective, liquidity requirements should be complemented by measures that increase bank incentives to adopt transparency.