Liquidity Risk Management under Basel III/IV Training Course

Introduction
In the wake of recent global financial disruptions, managing liquidity risk has become a top priority for financial institutions and regulators. The Liquidity Risk Management under Basel III/IV Training Course is specifically designed to equip banking and financial sector professionals with advanced tools, strategies, and regulatory insights to identify, measure, and manage liquidity risk. This course delves into the Liquidity Coverage Ratio (LCR), Net Stable Funding Ratio (NSFR), and other Basel III/IV liquidity frameworks, offering a deep understanding of how institutions can remain solvent and resilient under stressed conditions.

This five-day intensive course is structured to blend regulatory theory with hands-on application. Participants will explore liquidity risk analytics, stress testing, contingency funding planning, and compliance best practices. With a focus on real-world scenarios and case studies, the course enables professionals to develop a strong internal framework that supports robust liquidity management aligned with global regulatory requirements.

Duration

5 days

Target Audience:

  • Central bank supervisors and examiners
  • Bank treasury and risk management professionals
  • ALM officers and liquidity managers
  • Regulatory compliance and internal audit staff
  • Financial analysts and consultants working in the banking sector

Course Objectives:

  • Understand the key components and implications of Basel III/IV liquidity regulations
  • Apply practical techniques to measure, monitor, and control liquidity risk
  • Develop internal governance frameworks for liquidity management
  • Conduct liquidity stress testing and scenario planning
  • Strengthen compliance with LCR, NSFR, and related regulatory metrics

Course Modules

  1. Introduction to Liquidity Risk under Basel III/IV
  • Definition and types of liquidity risk
  • Causes and consequences of liquidity crises
  • Evolution of Basel liquidity requirements
  • Overview of LCR and NSFR
  • Role of liquidity risk in financial system stability
  1. Liquidity Coverage Ratio (LCR) Framework
  • Objectives and regulatory background of LCR
  • Calculating HQLA and net cash outflows
  • Managing short-term liquidity buffers
  • LCR disclosure and compliance requirements
  • Challenges in implementation and monitoring
  1. Net Stable Funding Ratio (NSFR) Explained
  • Purpose and structure of the NSFR
  • Calculating available and required stable funding
  • Long-term funding strategy alignment
  • NSFR reporting and threshold management
  • Interplay between NSFR and business models
  1. Intraday and Operational Liquidity Management
  • Managing payment systems and settlement obligations
  • Cash flow forecasting and monitoring tools
  • Collateral and intraday liquidity challenges
  • Role of central bank facilities
  • Integrating intraday risk into liquidity strategy
  1. Liquidity Risk Stress Testing and Contingency Planning
  • Designing forward-looking liquidity stress tests
  • Reverse stress testing approaches
  • Key assumptions and scenario development
  • Constructing contingency funding plans (CFPs)
  • Board and regulator communication of stress outcomes
  1. Governance and Internal Controls for Liquidity Risk
  • Establishing liquidity risk tolerance and limits
  • Roles of the board, ALCO, and risk committee
  • Documentation and policy frameworks
  • Internal audit of liquidity risk functions
  • Aligning liquidity with overall risk governance
  1. Integrating Liquidity Risk with Other Risk Types
  • Relationship between liquidity, market, and credit risks
  • Liquidity risk in capital planning and ICAAP/ILAAP
  • Correlation risk and risk aggregation techniques
  • Systemic risk and interconnectedness
  • Early warning indicators and risk escalation
  1. Case Studies and Practical Exercises
  • Failures and lessons from past liquidity crises
  • Real-world LCR/NSFR compliance audits
  • Interactive liquidity risk simulation exercises
  • Peer benchmarking and liquidity dashboards
  • Designing institution-specific liquidity strategies

CERTIFICATION

  • Upon successful completion of this training, participants will be issued with Macskills Training and Development Institute Certificate

TRAINING VENUE

  • Training will be held at Macskills Training Centre. We also tailor make the training upon request at different locations across the world.

AIRPORT PICK UP AND ACCOMMODATION

  • Airport pick up and accommodation is arranged upon request

TERMS OF PAYMENT

Payment should be made to Macskills Development Institute bank account before the start of the training and receipts sent to info@macskillsdevelopment.com

 

Liquidity Risk Management Under Basel Iii/iv Training Course in Tanzania, United Republic of
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