Liquidity Risk – A Key Prong in the Banking Supply Chain

Identifying liquidity risk takes more than a set of financial ratios – it is the most vital part of the banking supply chain. Banking as an industry remains a financial intermediary. The ability to buy funds from depositors and lend those funds to borrowers relies upon both sources of affordable funding, and a strong and healthy demand. And now due to the impacts from the coronavirus, a higher proportion of loans with lower credit ratings increases the need for more liquidity.

In this session, we will explore how an improved approach to liquidity analysis can help improve profitability and inform other asset/liability risk measures. We will highlight the risks of using historical regulatory measurements and offer a more effective framework for management, in addition to outlining a practical framework for measuring and reporting different liquidity types. Lastly, we will discuss how unplanned events might impact the liquidity position and what actions might be reasonable for management to consider.

Join this webinar to learn:

  • A user-friendly definition of liquidity
  • Major causes of liquidity risk in financial institutions
  • Strengths and weaknesses of traditional analysis
  • A more practical approach to measuring current and future liquidity due to the coronavirus
  • Contingency plans for your institution

Meet Your Presenters

Dave Koch

Director, Advisory Services
Since 1989, Dave has delivered educational programs on Asset/Liability Management and pricing topics to Federal Regulatory Agencies, national and state industry trade groups, Federal Home Loan Banks, and Corporate Credit Unions nationwide.

Full Bio

Teri Grams, CPA

Advisor
Teri Grams, CPA, an Advisor with Abrigo, leverages 20-plus years of experience to deliver insight and guidance as she works with clients on their asset/liability models, providing interest rate risk analysis, regulatory reporting, model validation, and training. She previously held management roles at CUNA Mutual Group and worked in community

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