Regulation Framework – Basel Accords
This course helps the audience understand the main aspects of the regulation environment pointing out the requirements of the Basel Accords, especially Basel II and Basel III.
The course helps the audience understand the major issues related to liquidity risk.
3 hours
English
Online
To be determined
Liquidity risk arises when there is a mismatch between assets and liabilities in terms of maturities, interest rates, and currencies, creating potential difficulties in meeting short-term financial obligations. This risk is crucial for financial institutions as it can impact their ability to finance operations and manage cash flow effectively. This training course delves into the complexities of liquidity risk, offering participants a comprehensive understanding of how to identify, measure, and manage it within a banking context.
This course covers essential topics related to liquidity risk, including how banks finance their assets and manage cash flows. Participants will learn about the four uses of cash and the six sources of cash, which are fundamental concepts for understanding liquidity management. The training will also explore techniques for identifying and measuring liquidity risk, such as gap reports and cash flow forecasts. Furthermore, the course will discuss strategies for managing liquidity risk, including the development of a crisis plan, maintaining reserve requirements, addressing funding mismatches, and utilizing securitization. Finally, participants will gain insights into the Basel II liquidity requirements and their implications for financial institutions.
By the end of this course, participants will:
- Understand the concept of liquidity risk and its impact on financial institutions.
- Learn how banks finance their assets and the importance of liquidity management.
- Be able to identify the four uses and six sources of cash in a banking context.
- Gain skills in measuring liquidity risk through tools like gap reports and cash flow forecasts.
- Develop strategies for managing liquidity risk, including creating crisis plans and maintaining reserve requirements.
- Understand the role of securitization in liquidity management and its benefits.
- Be familiar with the Basel II liquidity requirements and how they influence bank operations.
In summary, this course provides a thorough exploration of liquidity risk, equipping participants with the knowledge and tools needed to effectively manage this critical aspect of financial risk within their institutions.