The Liquidity Risk Management Guide (PDF)

Liquidity risk is in the spotlight of both regulators and
management teams across the banking industry. The European banking
regulator has introduced and implemented a stronger liquidity
regulatory framework and local regulators have made liquidity a top
priority on their supervisory agenda. Banks have accordingly
followed suit. Liquidity risk is now a topic widely discussed
in boardrooms as banks strive to set up a strong and efficient
liquidity risk management framework which, while maintaining
sufficient resources, does not jeopardize the necessary
profitability and return targets.

The Liquidity Risk Management Guide: From Policy to
Pitfalls is practical guide for banks and risk professionals to
proactively manage liquidity risk in a systemic way. The book
sets out its own comprehensive framework, which includes all the
various and critical components of liquidity risk management.
The recommendations are based on experiences from the recent
financial crises, best practices and compliance with current and
future regulatory requirements, with special emphasis on Basel
III.

Using the new 6 Step Framework, the book provides step-by-step
guidance for the reader to build their liquidity management
framework into a new overarching structure, which brings all the
different parts of liquidity risk into one approach. Special
attention is given to the challenges that banks currently face when
adopting and implementing the Basel III liquidity requirements and
guidance is given on how the new metrics can be integrated into the
existing framework, providing the most value to the banks instead
of being a regulatory reporting matter.