Since 2014 European Banking laws have been supplemented with harmonised rules for liquidity management and reporting. These rules fundamentally impact the conduct of banking business, and have significant implications in case of banking failure. The course focuses on the legal and regulatory aspects of this new framework for banks, by looking at both stages of going concern (ILAAP, liquidity, stress testing, LCR, NSFR) and gone concern (liquidity as the driver of failure; management of liquidity in resolution).
By close reading the relevant rules and regulations adopted since 2014, course participants will get acquainted with the full details of this complex framework and the impact it has on the (contractual) relationship between banks and its customers and liquidity providers, and its consequences for banks’ resolvability.
You will be updated on the recent changes in the European regulatory framework and the developments in the regulatory area for liquidity management. In-depth case studies will bring the importance of stress testing and dry swim exercises to the forefront.
Discussing the alignment of the liquidity quantitative and qualitative liquidity management frameworks in the context of recovery and resolution will bring understanding about the close relationship of the ordinary supervision with the framework for banks that find themselves in distressed circumstances.