Liquidity Risk Management – LCR and NSFR Implementation
Target Audience
Liquidity Risk Managers, Treasury professionals, and ALM specialists with 3-5 years experience in banking. Suitable for professionals responsible for funding strategy and liquidity management.
Audience Level
Intermediate to Advanced
Duration
Two-day programme (14 hours)
Delivery
Online or In-class
This programme provides comprehensive coverage of Basel III liquidity requirements, focusing on the Liquidity Coverage Ratio and Net Stable Funding Ratio implementation for SME banks. Participants will understand the fundamental shift in liquidity risk management philosophy and develop practical skills in liquidity buffer management, stress testing, and funding diversification strategies appropriate for SME-focused institutions.
The course addresses the unique challenges SME banks face in meeting LCR and NSFR requirements given their typically more concentrated funding sources and limited access to high-quality liquid assets. Practical exercises focus on optimising balance sheet structure whilst maintaining effective SME lending capacity.
Participants will:
- Master LCR and NSFR calculations and reporting requirements
- Develop effective liquidity stress testing frameworks
- Implement funding diversification strategies suitable for SME banks
- Understand regulatory expectations for liquidity risk governance
- Optimise balance sheet structure to meet liquidity requirements whilst supporting SME lending
- Navigate practical challenges in accessing high-quality liquid assets
- Basel III Liquidity Framework
- Evolution of liquidity regulation post-crisis
- LCR and NSFR: objectives and calibration
- Interaction with Basel III capital requirements
- MENA regulatory implementation variations
- Liquidity Coverage Ratio
- High-quality liquid assets: definition and eligibility
- Net cash outflows under stress scenarios
- Operational requirements and minimum thresholds
- LCR optimisation strategies for SME banks
- Net Stable Funding Ratio
- Available stable funding calculation
- Required stable funding determination
- Balance sheet implications and business model considerations
- NSFR compliance strategies
- Liquidity Risk Management
- Stress testing and scenario analysis
- Contingency funding plans
- Funding diversification and concentration limits
- Integration with business strategy and capital planning
Contact Form
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