Stress testing / Liquidity and funding risk [43]

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Bullet points include: Banks have for some time had elaborate systems for working out their liquidity positions and controlling liquidity risk Usually operated by treasury departments / desks rather than risk managers Typically these systems were designed to cope with possible shortages of liquidity over short horizons (days or even hours) Much shorter than timescales of problems observed during 2007-09 credit crisis What are banks now doing to address these weaknesses?

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