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Liquidity Risk Management

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Searching for the necessary tool for effective liquidity risk management? The expertise of our risk management consultants covers the technical and functional architecture, the liquidity measurements and the reporting that constitute the core framework for effective liquidity risk management.

Proposition

The recent credit crunch showed banks act massive write downs and struggle to get access to capital and funding. Since then banks have to face high spreads, a dramatic increase in their cost of funding and their profitability is clearly under pressure. The liquidity crisis showed us that a "run to the bank" is not pure fiction anymore with many customers trying to get their savings back.

Even if the regulators seemed to treat liquidity risk as a minor risk in their previous publications (liquidity risk is approached in the second pillar of Basel II and with no specific capital charge) they are now pushing forward the implementation of a sound liquidity risk management framework.

Why B&D ?

Business & Decision's risk management consultants will help you develop and implement a robust and integrated liquidity management framework with:

  • the projection of Cash Flows from assets, liabilities and off-balance sheet items over appropriate time horizons and under different scenarios
  • covering all legal entities, business lines and currencies and taking into account all limitations on the transferability of liquidity.
  • a view on the intraday liquidity positions
  • ability to actively manage risks and meet payment obligations on a timely basis under both normal and stressed conditions.

The expertise we bring covers the technical and functional architecture, the liquidity measurements and the reporting that constitute the necessary tool for effective liquidity risk management.