3.8.Basel Management

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  1. Liquidity risk management challenges
    • Increased reliance on funding from the capital mkts
    • Securitization
    • Complexity of financial instruments
    • Increase use of collateral agreements
    • Automated pmts systems and intraday settlements
    • Cross border flows
  2. Approaches to supervise liquidity risk
    • Liquidity policies
    • Stress tests
    • Contingency funding plan
    • Setting limits
    • Reporting
    • Public disclosure
  3. Key lessons from 2007 crisis
    • Stress testing: include mkt-wide shocks
    • Contingency funding plans: were too weak
    • Off-balance sheet and contingent commitments
    • Balance sheet management & internal transfer pricing
    • Capital: should not be used in place of liq mgmt
    • Central bank facilities
    • Cross-border issues

Card Set Information

Author:
Exam9
ID:
65097
Filename:
3.8.Basel Management
Updated:
2011-02-09 01:41:01
Tags:
Basel
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Description:
Basel
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