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Liquidity Regulation: Concepts, Methods and Applications

Fully booked – Registration closed

To request inclusion in the waiting list, please contact fbf@eui.eu

 
  • General description

    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.

  • Topics covered

    • Liquidity Coverage Ratio and Net Stable Funding Ratio’s in the European Capital Requirements Regulation framework
    • Definition of High Quality Liquid Assets, the changing definition of safe assets and the forthcoming Simple Transparent and Standardised Securitisations
    • Stress testing, survival period and measurement of resilience against liquidity shocks
    • Internal Liquidity Adequacy Assessment (ILAAP), Risks not included in LCR
    • Relationship with recovery and resolution frameworks, importance of liquidity constraints for the definition of “failing or likely to fail”

  • What you will learn

    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.

  • How the course will work

    Total course length: 13 hours.

    The course will be organised in a two day programme with each day 8 contact hours with the instructors to the course. The course will include a technical introduction with academic lectures and an interactive training sessions in which the participants will work together on practical cases.

    A certificate of attendance will be provided to all participants after the course.

  • Meet the instructors

    Bart P.M. Joosen is trained as civil law lawyer at Tilburg University, the Netherlands. He obtained his (equivalent to) LL.M degree in 1987. After completion of his academic study he was appointed as lecturer in the law faculty of Tilburg University in 1987. He successfully defended his dissertation on “Transfer of undertakings in bankruptcy” at Tilburg University and was promoted to doctor in law science (PhD) in 1998. He works since 1992 in private practice particularly for financial market clients. His main areas of expertise are in the field of financial services supervision with a focus on micro-prudential supervision of banks (including in-depth Basel II/Basel III and Solvency II knowledge), insurance companies and investment firms and payment services. Besides working in private practice, he is an extraordinary professor Financial Supervision Law at the VU University in Amsterdam.

    Stefano Cappiello is Programme Director at the Florence School of Banking and Finance. He has been working in various national and international institutions as policy maker, regulator, and supervisor: from 2015 to 2018 he was Head of Unit at the Single Resolution Board, responsible for resolution plans and crisis management of Greek, Cypriot and two Global Systemically Important Banks, and member of the Financial Stability Board (FSB) Cross-border Crisis Management Group. Previously he worked for four years at the European Banking Authority (EBA) as Head of Unit for the recovery and resolution areas, and from 2008 to 2011 at the Italian Ministry of Economy and Finances as senior adviser for financial regulatory policies. From 1999 to 2008 he has been at the Bank of Italy, first as senior researcher at the Law and Economics Research Unit and then as senior officer at the Supervisory Regulation and Policies Department. His academic activity and publications focus on economic analysis of corporate, banking and financial law, and he is qualified as associate professor of “Diritto dell’Economia”, and of “Diritto Commerciale” in Italy; Master of Laws at the University of Chicago; PhD at the University of Viterbo; Global Fellow at the NYU Law School.

    Jeroen Van Bommel works at the European Central Bank as a Principal Banking Supervisor, for a portfolio of significant institutions. He coordinates supervisory teams and projects and advises on aspects of liquidity and funding risks, and other risk management topics. His areas of focus are: business model and firm strategy, ICAAP and capital management, ILAAP and liquidity risk management, Interest rate risk management.

    Jean-Jacques van Helten is a Visiting Fellow at the Robert Schuman Centre for Advanced Studies, formerly Chief Risk Officer, Europe for the Bank of Montreal (BMO) Financial Group. Previously, he ran credit and market risk in the CBA’s institutional bank in Sydney and he has worked variously in a range of senior executive risk and capital markets business roles in major investment banks in Europe, Australia and the UK.

  • Prerequisites

    A MA in Social Sciences, Economic or Law is recommended. Other prerequisites:

    • Basic understanding of the CRR-CRD IV framework;
    • Familiarity with the Liquidity Coverage Ratio Regulation;
    • Understanding of the Pillar 2 Supervisory Review and Evaluation Process

    Technical Prerequisites

    Participant are required to bring their own laptops.

  • Fees

    1750€ – Public Authorities (e.g. National Competent Authorities, Central Banks) and European Institutions

    1900€ – Private Sector

    1000€ – Academics (Assistant, Associate or Full Professors)

    850€ – Students (with certificate of studies)

    The course fee covers coffee and lunch breaks. Travel and hotel costs are not included.


    GROUP DEALS

    • In case of registration of 3 participants from the same organisation, the course fee is waived for one of them.
      To benefit from the deal, the names of the 3 participants have to be communicated to fbf@eui.eu before registering. We cannot communicate the names of other registered people from the same institution (it is upon your responsibility to get in touch with your HR division). A single debit note will be issued for the 3 participants followed by one payment.
    • Special deals apply for larger groups.

    CANCELLATION POLICY

    • In case a course is cancelled, registered participants will receive the full refund.
    • In case a course is moved to another date, registered participants may request a voucher to attend another FBF course.
    • Registered participants who cancel their participation will receive a voucher to attend another FBF course.

    For more details, please contact fbf@eui.eu
  • Practical information

    Accommodation 

    Recommended hotels:
    Hotel Villa La Stella (20 min walking distance from EUI )
    Hotel Cellai
    Hotel Palazzo Ricasoli
    Hotel de la Pace
    Hotel Athenaeum

    Wi-Fi

    On arrival, participants will be provided with temporary wi-fi access for the whole duration of the course.

    Privacy Notice

    The personal information you have provided will be processed in compliance with the EUI Privacy Statement for conferences.
    For general queries: fbf@eui.eu

  • Reading material

    Registered participants can access the course material page using the password provided by the FBF secretariat.