The Liquidity Risk Book


Go to the website of Incisive Media (RiskBooks)


The challenge of Liquidity Risk is quickly becoming a primary problem for the stability and profitability of Banks. The regulatory bodies have responded by introducing such regulations as Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR). Simply meeting these requirements is an upcoming challenge. However banks must take this opportunity to go beyond pure regulatory requirements and begin to measure and manage their economic liquidity risk. By taking a more thorough approach and truly managing economic liquidity risk, organizations will be able to also satisfy upcoming regulations and be ideally placed to meet further changes in the regulatory landscape.