Bank Solvency and Liquidity risks
The key activities for banks create risks such as credit, liquidity and funding maturity mismatch alongside market risks, both in terms of traded and non-traded. Banks accept these risks and need to have good knowledge, controls and governance to manage them. This video delves into these areas in more depth.
Overview
This video considers the main risks that banks run in the hope of making a profit, while, at all times, controlling and managing those risks. It is the decisions to take financial risk that sets banks (and building societies) apart from other types of company. In manufacturing terms, financial risk is the product that bank “manufacture”.
Key learning objectives:
Examine the principal risks to which banks are typically exposed
Examining solvency risks
Examining liquidity and funding risks
Summary
Expert
Chris Blake
Chris Blake holds a degree in Economics and Government from the London School of Economics. He is responsible for helping HSBC professionals understand balance sheet risk and return. He has previously worked as a risk specialist in ALM for the FSA. Prior to that, he worked as a money market and interest rate derivatives trader for Investec. Chris is also the Co-chair and Education Director of the UK Asset and Liability Management Association.
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