Liquidity Risk Management
Overview:As a result of the subprime sector meltdown and the subsequent credit crunch, banks must now increase supervision of liquidity risk and provide an increased level of transparency to auditors and the public. Banks all over the world are increasingly becoming more concerned over this issue. There are many important factors banks and financial institutions must consider when developing effective Liquidity Risk Management policies including: management structures, monitoring net finding requirements, emergency planning, foreign currency, internal controls and public disclosure to name a few.
The Knowledge Congress has assembled a panel of experts to help banks tackle the issue of Liquidity Risk Management in today’s challenging business environment.
<strong id="ep-name-of-speaker">Michael Stevens, Senior Vice President, Regulatory Affairs,</strong>
<em id="ep-speaker-firm">Conference of State Bank Supervisors (CSBS)</em>
- Current events provide important lessons about the importance of liquidity.
- Liquidity is ultimately driven by confidence.
- Liquidity risk management is driven by options.
- Adequate liquidity is determined by your business model, what is on the balance sheet, and what is
not on the balance sheet.
- You have to get this one right 100% of the time.
<strong id="ep-name-of-speaker">Craig Marchbanks, Supervisory Financial Analyst, </strong>
<em id="ep-speaker-firm">Board of Governors of the Federal Reserve System (FRS)</em>
- Observations of risk management weaknesses during market disruption
- Consequential nature of liquidity risk
- Overview of financial performance of large bank holding companies
- Issues and supervisory expectations going forward
<strong id="ep-name-of-speaker">Leonard Matz, Director of Liquidity and Interest Rate Risk Consulting,</strong>
<em id="ep-speaker-firm">SunGard Bancware</em>
- How did the sub-prime mortgage loan credit melt down turn into a bank liquidity problem?
- What should my bank be doing just in case conditions worsen?
- The Federal Reserve and other international central banks have made lots of liquidity available.
So why are we still talking about a potential worsening of liquidity risk?
- Standard and Poor’s and some regulators are talking about survival horizons. Is this something
that my bank should measure?
- I’ve been reading about liquidity var (LVaR). Is this something that my bank should measure?
- What’s the value in doing really ugly, worst case forecasts? Those conditions are too improbable.
And even if they occurred the Fed would have to bail us out.
<strong id="ep-name-of-speaker">Dr. Susan M. Mangiero, President and CEO, Managing Member,</strong>
<em id="ep-speaker-firm">Pension Governance, LLC</em>
- How to measure liquidity
- How it ties to asset allocationg and funding (i.e. has spillover consequences)
- Fiduciary implications of assessing liquidity
- How to identify red flags in terms of liquidity problem
Who Should Attend:
Financial/Accounting Managers, Asset/Liability Management Officers , Risk Managers, Treasury managers, Executive Officers, Risk Analysts & Controllers, Contingency Planning Officers, Fund Managers.
Leonard Matz is currently employed by SunGard BancWare as Director of Liquidity and Interest Rate Risk Consulting. He is an author, consultant, and bank trainer specializing in risk management and ALM for financial institutions. Previously, he spent five years as a bank examiner and fifteen years in various bank management positions. Mr. Matz is the author or co-author of numerous risk management and investment books, including: Liquidity Risk Measurement and Management: A Practioner’s Guide to Global Best Practice, Liquidity Risk Management, Risk Management for Banks, Interest Rate Risk Management, and Self-Paced Asset/Liability Training. He is a frequent speaker and industry conferences and training programs around the world and has been a member of the North American Asset/Liability Management Association since 1989.
Leonard Matz is currently employed by SunGard BancWare as Director of Liquidity and Interest Rate Risk Consulting. He is an …
Mr. Marchbanks is Supervisory Financial Analyst, Market & Liquidity Risk, in the Division of Bank Supervision and Regulation at the Board of Governors of the Federal Reserve System. Mr. Marchbanks is primarily involved in the supervision of banks’ interest rate risk
Prior to joining the Board in 2004, Mr. Marchbanks served as Vice President and Senior Asset/Liability Analyst for the Bank of Bermuda, (member HSBC group). Mr. Marchbanks has also worked as a Senior Financial Analyst for Pentagon Federal Credit Union, and as an Interest Rate Risk Analyst, and Fixed Income Trader for First American Bank.
Mr. Marchbanks received his BA from Lake Forest College and his MBA from Marymount University.
Mr. Marchbanks is Supervisory Financial Analyst, Market & Liquidity Risk, in the Division of Bank Supervision and Regulation at the …
Dr. Mangiero is President and CEO of Pension Governance, LLC with over twenty years of experience in capital markets, global treasury, asset-liability management, portfolio management, financial risk control and valuation. She has worked on three trading desks, in the areas of foreign exchange, fixed income, futures and options. An Accredited Valuation Analyst, Accredited, Investment Fiduciary Analyst, Chartered Financial Analyst and certified Financial Risk Manager. Dr. Mangiero is regularly invited to speak about valuation, risk and governance with an emphasis
on applications to pensions and hedge funds. She has addressed groups that include the U.S. Department of Labor, Chicago Board of Trade, New York State Department of Insurance, Merrill Lynch, Association of Public Pension Fund Auditors, Association of Forensic Economics, New England Public Employee Retirement Systems Forum, Global Association of Risk Professionals, American Society of Appraisers, the Wall Street Transcript, Strategy Institute, Connecticut State Department of Banking, Canadian Investment Review (keynote), Strategic Research Institute, Incisive Media (publisher of Hedge Funds Review) and the Connecticut Society of Certified Public Accountants.
Her book, Risk Management for Pensions, Endowments, and Foundations (John Wiley & Sons, 2005), looks at risk management and valuation issues, with an emphasis on fiduciary responsibility and best practices. Her articles have appeared in Hedge Fund Review, Investment Lawyer, Valuation Strategies, RISK Magazine, Financial Services Review, Family Foundation Advisor, Hedgeco.net, Expert Evidence Report, and Bankers Magazine. Susan Mangiero has written chapters for several books including the Litigation Services Handbook and The Handbook of Interest Rate Risk Management and is a contributing editor of the Journal of Compensation and Benefits. She has been quoted in places that include the New York Times, Wall Street Journal, Baltimore Sun, Bloomberg.com, 401(k) Wire and Pensions & Benefits. She holds a Ph.D. in finance from the University of Connecticut, an MBA in Finance from New York University, an MA in Economics from George Washington University.
Dr. Mangiero is President and CEO of Pension Governance, LLC with over twenty years of experience in capital markets, global …
Mike serves as the Senior Vice President for Regulatory Policy at the Conference of State Bank Supervisors (CSBS). In this capacity, Mike represents the state banking system in the development of federal regulatory policy in the areas of consumer protection and safety and soundness. He is also responsible for any issues related to the coordination and cooperation between state and federal regulators. Mike serves as the staff director for the Regulatory Committee, State Federal Working Group, and the FFIEC’s State Liaison Committee. Prior to this assignment, Mike worked in all facets of CSBS’s Professional Development Division. He is a frequent instructor and speaker on bank examination, bank financial analysis and regulatory issues. Mike serves on the faculty of the Graduate School of Banking at Colorado, the Texas Tech Bank School and the Graduate School of Bank Investments and Financial Management. Prior to joining CSBS in 1999, Mike was a bank examiner for the Iowa Division of Banking for 11 years.
Mike is a graduate of the University of Nebraska at Omaha. He lives in Ashburn, Virginia with his wife, Becki, and two children.
Mike serves as the Senior Vice President for Regulatory Policy at the Conference of State Bank Supervisors (CSBS). In this …
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Board of Governors of the Federal Reserve System (FRS)