Training course on Liquidity Risk Management

Module 1: Introduction to Liquidity Risk

Definition and importance of liquidity risk

Types: funding liquidity risk vs. market liquidity risk

Lessons from past financial crises

Module 2: Liquidity Risk in Banking and Financial Institutions

Sources of liquidity risk in banks

Impact on profitability, solvency, and stability

Case study: Liquidity failures in global banks

Module 3: Regulatory Framework and Basel III Standards

Liquidity Coverage Ratio (LCR)

Net Stable Funding Ratio (NSFR)

Supervisory monitoring tools

Central bank roles and expectations

Module 4: Measuring and Monitoring Liquidity Risk

Liquidity gap analysis

Cash flow projections

Key liquidity ratios and early warning indicators

Use of liquidity dashboards and MIS

Module 5: Stress Testing and Scenario Analysis

Principles of liquidity stress testing

Designing severe but plausible scenarios

Reverse stress testing

Case examples of stress test applications

Module 6: Contingency Funding Planning

Developing a Contingency Funding Plan (CFP)

Identifying alternative funding sources

Role of central banks and emergency liquidity assistance

Crisis management strategies

Module 7: Liquidity Risk and Asset-Liability Management (ALM)

Integrating liquidity management into ALM frameworks

Balance sheet optimization strategies

Interaction with interest rate and credit risks

Module 8: Emerging Issues and Best Practices

Liquidity risks in digital banking and FinTech

Intraday liquidity management

ESG and climate-related liquidity risks

Global trends and future regulatory developments