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

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. Dave currently serves on the faculty of the Graduate School of Banking at the University of Wisconsin – Madison as well as numerous other industry schools. In addition to his speaking roles, Dave is actively involved with Abrigo clients consulting with them on capital planning, loan & deposit pricing, and other ALM concerns in an effort to make the ALCO processes more effective. Abrigo and Dave are committed to helping the community financial industry develop workable strategies and risk management processes to improve financial performance, regulatory compliance and overall solutions to their business challenges.

Full Bio

Teri Grams, CPA

With more than 20 years of experience in asset/liability management, Teri uses her vast experience and expertise to provide insight, guidance, and quality customer service to Abrigo’s clients. She works with clients on their asset/liability models, providing interest rate risk analysis, regulatory reporting, model validations and asset/liability training. Teri spent 16 years at CUNA Mutual Group in various management roles, including Financial Analyst, Consulting Manager, and Product Specialist. She also worked for many years in community financial institutions serving as a Controller and Financial Analyst responsible for asset/liability reporting to management teams and boards of directors. Teri is a licensed CPA and an active member in the American Institute of CPAs (AICPA) and the Wisconsin Institute of Certified Public Accountants (WICPA). She has a Bachelor of Science in accounting from Upper Iowa University.

Full Bio

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