The Liquidity Risk Management Guide: From Policy to Pitfalls (The Wiley Finance Series) - Hardcover

Adalsteinsson, Gudni

Hardcover

ISBN 10: 111885800X ISBN 13: 9781118858004

Publisher: Wiley, 2014

Synopsis

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.

About this title

About the Author

Gudni Adalsteinsson (London, UK) is Head of Asset Liability Management at AIB UK, where he is responsible for overall balance sheet management. His experience ranges from running treasury for a European bank during the credit crunch, working for the Financial Services Authority on its liquidity framework to providing liquidity advisory to UK banks. Adalsteinsson previously ran a liquidity advisory boutique and worked at the FSA on its new liquidity regime and was a group treasurer for an Icelandic bank during the unprecedented liquidity shocks of 2008 which offered him first-hand experience on liquidity risk management under severe crises. Between the years of 1998 and 2005 he was an executive director at Lehman Brothers and Credit Suisse in London and Frankfurt advising German banks on their liquidity and structured credit investments.

From the Back Cover

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 a 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 crisis, 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.

From the Inside Flap

The Liquidity Risk Management Guide is a very effective attempt to put a framework to understand, quantify, and risk-manage banks’ exposure to funding gaps and funding risks. Gudni Adalsteinsson successfully manages to combine sound research with his own hands-on experience at a number of important financial institutions. I found the reading approachable, no-nonsense and compelling in its attempt to demystify liquidity as an asset class.’
Philippe Dufournier, Head of Global Finance,
Nomura International

‘This is a book that is written by a finance practitioner who has experienced first-hand a bank insolvency caused to a large extent by a liquidity crisis. As a result, the book is written with a theoretical base but focuses on practical suggestions on how to manage liquidity of a bank and the associated risks of a liquidity failure. The book is thorough, timely, thoughtful and an excellent introduction to liquidity management for the layman, and also a useful companion for professionals in the banking industry.’
Petter Sternby, Managing Director, Financial Institutions Industry Coverage, Standard Chartered Bank

‘This is a must-read book for those wishing to progress to the highest levels of Asset and Liability Management.’
Christopher Blake, Senior Manager, Liquidity Risk, HSBC HOLDINGS PLC HGHQ

Edition details

• Publisher: Wiley
• Publication date: 2014
• Language: English
• ISBN 10: 111885800X
• ISBN 13: 9781118858004
• Binding: Hardcover
• Edition number: 1
• Number of pages: 224