Liquidity Risk Management in Banks

Analytic Overview: The aim of this section is to introduce the concept of liquidity risk and explore how it affects banks business models. Governance: The governance section aims to identify the differing sensitivities and tolerances to liquidity risk for differing bank business models, and how this affects the approach to liquidity risk management taken by individual institutions. Asset Liquidity and Funding needs: The aim of this section is to develop quantitative and qualitative techniques for assessing the liquidity risk of financial institutions. Funding Strategy: This section aims to demonstrate the importance of a bank's funding strategy and its critical relationship to the banks business model. Supervision: This section is to identify the regulatory treatment of liquidity risk from both the Basel 2/3 perspective and how approaches taken by individual national regulators within this framework may differ.