Liquidity and Funding Risk Management in DFIs

Development Finance Institutions (DFIs) face unique liquidity and funding challenges due to their long-term, illiquid asset portfolios and reliance on non-deposit sources like capital markets, government appropriations, and multilateral funding. Effective **Liquidity and Funding Risk Management** is critical to ensure their sustainability and continuous fulfillment of their mandate. This course provides a specialized framework for measuring, monitoring, and mitigating these risks, focusing on balance sheet structure, debt maturity profile, and contingent funding planning. Participants will learn how to design robust stress tests tailored to DFI funding shocks and implement an optimal asset-liability management (ALM) strategy for long-term development assets.