Mastering Liquidity Risk: Basel Iii & Beyond

Essential Tools for Financial Stability: LCR, NSFR, & Leverage Ratio

What you'll learn

Understand the key principles of liquidity risk management under the Basel III framework

Calculate and interpret the Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR)

Evaluate the leverage ratio and its role in mitigating systemic risk

Apply liquidity risk management concepts to real-world scenarios and case studies

Requirements

A basic understanding of banking and financial concepts is recommended, but not required. The course is designed to be accessible to learners with varying levels of experience.

Description

Embark on a secure and comprehensive learning journey into the complex world of liquidity risk management with this course. Understand the causes and consequences of the 2008 financial crisis, and learn how the transformative Basel III framework has revolutionized how banks approach liquidity risk, enlightening you with the latest industry insights. Master the critical tools like the Liquidity Coverage Ratio (LCR), Net Stable Funding Ratio (NSFR) and Leverage Ratio through clear explanations, practical examples, and calculations. Develop the skills to assess the liquidity risk profile of any financial institution and contribute to its long-term resilience. This course is an essential guide for risk professionals, banking students, and anyone interested in understanding the foundations of financial stability.Key Focus:Demystifying Liquidity Risk: Gain a comprehensive understanding of liquidity risk, its impact on financial stability, and the role of Basel III and IV regulations in mitigating it.Unveiling Basel Liquidity Frameworks: Dive into the core liquidity requirements of Basel III, including the Liquidity Coverage Ratio (LCR) and the Net Stable Funding Ratio (NSFR), and understand their practical implications for managing short- and long-term funding needs.Mastering Measurement and Monitoring: Learn advanced techniques for measuring liquidity risk, forecasting cash flows, and conducting stress testing to anticipate and mitigate potential disruptions.Developing Effective Risk Management Strategies: Implement best practices for managing liquidity risk, including contingency planning, diversification of funding sources, and optimizing asset-liability structures.Embracing the Leverage Ratio: Analyze the Basel IV Leverage Ratio and its impact on liquidity risk management, ensuring compliance and optimizing capital allocation.Staying Ahead of the Curve: Keep abreast of the latest developments in Basel regulations and their influence on liquidity risk management practices.

Overview

Section 1: Introduction to Liquidity Risk

Lecture 1 Understanding Liquidity Risk

Lecture 2 The 2008 Financial Crisis and its Impact on Liquidity Risk

Lecture 3 Leverage and Liquidity Risk

Section 2: The Liquidity Coverage Ratio (LCR)

Lecture 4 Objectives and Calculation of the LCR

Lecture 5 High-Quality Liquid Assets (HQLA)

Lecture 6 Cash Flow Measurement

Lecture 7 LCR Implementation Timeline

Section 3: The Net Stable Funding Ratio (NSFR)

Lecture 8 Overview and Objectives of the NSFR

Lecture 9 Available Stable Funding (ASF) & Required Stable Funding (RSF)

Section 4: The Leverage Ratio

Lecture 10 Need, Advantages, Disadvantages and Calculation of the Leverage Ratio

This course is ideal for risk professionals, banking and finance students, compliance officers, regulators, and anyone seeking to deepen their understanding of liquidity risk management and the Basel III framework.