Chelsea Denyer’s Post

FSB proposals to enhance liquidity preparedness for margin and collateral calls. Weaknesses in liquidity risk management and governance by some market participants, were found to be the key causes behind inadequate liquidity preparedness for margin and collateral calls, according to the FSB https://lnkd.in/ej7UrKzK #SecuritiesLending #banking

FSB proposals to enhance liquidity preparedness for margin and collateral calls. Weaknesses in liquidity risk management and governance by some market participants, were found to be the key causes behind inadequate liquidity preparedness for margin and collateral calls, according to the FSB https://lnkd.in/eDT2zgzp #SecuritiesLending #banking

Banking on interest rates: A playbook for the new era of volatility: Five levers can help banks set themselves on a course to more proactive and effective interest rate risk management. http://dlvr.it/T7qfqq

In an industry where adaptability is key, credit unions must stay ahead of the curve to ensure financial stability and success. Gain valuable insights on evaluating liquidity risk management practices in a rapidly changing environment, the importance of stress testing and scenario analysis and how to mitigate risk. Read more: https://lnkd.in/gFZDFtpr #CreditUnions #Liquidity #RiskManagement #Banking

On Friday, #RepublicFirstBank, became the first US bank to fail in 2024. What can we learn from this? Risk Management is crucial. Why? Risk Management is paramount for banks because it helps identify and mitigate potential risks that could impact their financial stability, reputation and trust from their customers. How? Strategically managing portfolio-wide risks, through methods like stress testing, expected credit loss calculations, economic forecasting, budgeting, and asset/liability management (to name a few) provides institutions insights to make more informed decisions before unforeseen challenges arise. https://lnkd.in/e68zyyWE #bankfailure #RiskManagement #stresstesting #alm #pennsylvania #bankregulation #lendingpractices #interestratevolatility #Commercialrealestate

Here is my latest article, co-authored with David Cassonnet, on liquidity risk management, which was published today by the Financial Times' Banking Risk and Regulation. In the article titled “CROs need to rethink how to fight liquidity shocks”, we discuss critical areas of liquidity risk management frameworks that CROs should focus on. CROs must break down silos to integrate liquidity risk into a holistic 360-degree view of the institution’s risk profile, alongside real-time warning signals and robust scenario analysis. Crucially, the success of this transformation depends on two key enablers: adopting a modern risk management culture and leveraging cutting-edge technology. With these elements in place, banks will be better equipped to navigate the complex liquidity challenges of the digital era and strengthen their resilience in the face of future shocks. Please read the article here:  https://lnkd.in/exkFZTxZ #liquidityrisk #CRO  #riskmanagement  

Balance Sheet Concentrations - Inevitable or Avoidable? What is the importance of appropriately identifying and managing funding concentrations? In the latest issue of Community Banking Connections, Lead Examiner Andrew Giltner from the Federal Reserve Bank of Chicago discusses some of the most prevalent balance sheet concentrations held by community banks, highlighting key concentration risks and discussing the current guidance and supervisory expectations for prudent concentration risk management practices. Read the article here: https://bit.ly/4cSxIQS #CapitalPlanning #CRE #CommercialRealEstate #RiskManagement #CommercialProperty #CommunityBank #Banking #AssetManagement

The Liquidity Coverage Ratio (LCR) ensures banks hold enough high-quality liquid assets to cover 30-day cash needs. Basel III strengthens banks with higher capital requirements, a leverage ratio, and liquidity standards (LCR and NSFR). These measures enhance risk management and promote financial stability.

In recent years significant progress has been made in supervision & resolution of financial institutions, not least in Europe. Strict regulation often leads to risks migrating to neighboring, less or even unregulated sectors often labeled "shadow banking". When such risks arise they often hit the traditional financial sector. Today, there is still insufficient oversight of financial intermediaries falling outside the realm of traditional regulation, something which is worrying. The “outsourced” risks have only been outsourced, but they have not at all disappeared. This is why risk management remains so important, as does a fair level playing field. As far as interest rates are concerned we are not yet at a very high level in the long term, especially if one looks far back in time. But given that inflation has come down considerably lower interest rates will materialize in the not too distant future. Please find below a video recorded at the Oliver Wyman Taverna conference and the link to the report that Oliver Wyman offers for download. #OliverWyman #NewMonetaryOrder #LowForLong #TavernaConference #Banks #InsuranceCompanies #Banking #Regulation #Supervision #CentralBanks

We had the pleasure of talking to respected Treasury expert, Professor Moorad Choudhry about liquidity risk management in the banking sector. Choudhry has combined a 35+ year career in top financial markets with an MBA, a PhD, and a parallel career as a finance professor. We saw record attendance from senior treasury professionals and industry experts around the world, and the questions from the audience came thick and fast. Key highlights include: ✅ The importance of learning from historical banking failures ✅ The role of technology and data analytics in risk management ✅ The responsibilities of central banks versus individual banks The discussion was packed full of value, and everyone agreed that the time flew by. Please enjoy the on-demand version, linked in the comments below. #TreasuryManagement #RiskManagement #Banking