Start Date: 6/12/2024 9:00 AM MDT
End Date: 6/12/2024 10:30 AM MDT
Location:
United States
Liquidity risk management is one of the biggest, if not the biggest, regulatory focus in 2024. In March 2023, the failures of Silicon Valley Bank and Signature Bank showed that liquidity risk can produce a bank failure instantly, versus a slower asset quality-related failure. These liquidity-related failures put a level of fear and panic into the banking industry during a time in which the Federal Reserve increased interest rates at an unprecedented pace and magnitude.
Subsequent action by the Federal Reserve quickly reversed liquidity out of the banking system and tightened the level of liquidity across many institutions. Liquidity risk management and contingency funding planning should no longer be seen as boxes that need to be checked off as the reduction of on-balance sheet liquidity and stiff competition for deposits have made liquidity risk management a priority with the regulators.
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