In this session we will cover current hot topics in managing liquidity, and discuss finding the proper balance between earnings today and planning for tomorrow’s potential problems.
Background
While interest rate risk is the current hot topic, and credit risk was at the root of the last banking crisis, it is usually liquidity risk that closes a troubled financial institution. For this reason, measuring and managing liquidity is under a new microscope even as the industry is currently awash in excess liquidity. Because liquidity is easy to come by in the current market, many financial institutions have failed to properly plan for the next rate and liquidity cycle even though their balance sheets now look drastically different. In this session we will cover current hot topics in managing liquidity, and discuss finding the proper balance between earnings today and planning for tomorrow’s potential problems. Are you sitting on too much cash? How much of your funding base is made up of surge deposits? What is your plan for shrinking the securities portfolio if rates are rising and loan growth returns?
Agenda
• Review the regulatory expectations, both old and new
• Review Basel III liquidity expectations
• Look at current industry balance sheet trends
• How to document your liquidity plan into the next cycle
• Balancing current earnings and liquidity
• Should bonds be classified as AFS or HTM?
Benefits
• Update on the current regulatory expectations
• Understand of prior rate and liquidity cycles
• A process for documenting liquidity plans
• Confidence in properly investing excess liquidity
Who Should Attend
• Financial officers
• Asset Liability Management staff
• Risk Managers
• Controllers
• ALCO committee members
• Directors