An Introduction to Banking: Liquidity Risk and Asset-Liability Management Moorad Choudhry
Publisher: Wiley, John & Sons, Incorporated

Monitoring Tools: Building upon tools introduced in the original LCR standards, the revised LCR standards provide a set of monitoring tools for national regulators to assess banks' liquidity risk. Results in undesirable volatility in bank reserve balances, which interferes with the central bank's ability to implement its target rate for interbank lending: So the government has introduced Treasury Tax and Loan (TT&L) accounts. The asset liability committee is responsible for balance sheet risk management. In addition, certain operational requirements apply to a bank's stock of high-quality liquid assets, including that the stock must be controlled by the function charged with managing the bank's liquidity (e.g., the treasurer) and that the bank must possess the operational capacity . It equipped banks with The participants were trained on doing GAP Analysis and liquidity ratio computations by letting them read and analyze sample cases of financial statements. Agreed; the problem is management. Review liquidity contingency plan for the banks and financial institutions. The workshop introduced both theoretical and practical knowledge to assist rural banks in developing comprehensive risk management practices, policies, and strategies. They were also given an overview of interest rate risks using Asset-Liability Management (ALM). [1] In December 2010 the Basel Committee of Banking Supervision published Basel III: International framework for liquidity risk measurement, standards and monitoring.[2] Two ratios constitute the core of . As discussed above, it is unlikely that the subordination of unsecured bank bond holders due to the shortening of average maturities of bank liabilities, contributes to bank liabilities regaining their statues as safe and liquid assets. That's what it means for a debt liability to be negotiable: the creditor who holds that debt as an asset can transfer it to a third party, so that the debtor ends up owing the same debt to a new creditor.