Liquidity Risk Management (LCR, NSFR) and Central Banks

Effective liquidity risk management is fundamental to bank resilience and financial stability, especially following the lessons of the 2008 financial crisis. This course provides a detailed, practical examination of the international liquidity standards—the **Liquidity Coverage Ratio (LCR)** and the **Net Stable Funding Ratio (NSFR)**—mandated under Basel III. Participants will learn the intricate details of calculating these ratios, the characteristics of High-Quality Liquid Assets (HQLA), and the strategic role of central banks as liquidity providers. The course integrates regulatory compliance with a deep understanding of internal liquidity risk frameworks, stress testing, and the critical relationship between bank funding and central bank facilities.