Follow Us

Follow us on Twitter  Follow us on LinkedIn

News

Graham Bishop at ECON's public hearing on DRF/eurobills - 1 April Video

Presentation on TEF to ECON Text

Graham Bishop at 33 in Top 40 British EU policy 'influencers' link

Monthly Assessment of EU integration progress link
View all Latest News
Graham Bishop @GrahamBishopcom
Free Tweetmail
 

William #Coen appointed as the next Secretary General of the #Basel Committee
View

11:23 AM Apr 23

#ESMA publishes updated data on performance of the Credit Rating Agencies
View

11:08 AM Apr 23

#EBA technical standards on #supervisory #reporting endorsed with amended calendar
View

3:32 PM Apr 16

#EBA publishes list of incorrect #ITS validation rules
View

3:28 PM Apr 16

#Basel Committee publishes final standard for measuring and controlling large #exposures
View

8:53 AM Apr 16
 

03 May 2006

Joint Forum Paper on Management of Liquidity Risk in Financial Groups





The Joint Forum’s Working Group on Risk Assessment and Capital issued the results of a review of funding liquidity risk management practices at conglomerates engaged in banking, securities, and insurance activities. The review focussed on 40 large, complex financial groups with operations spanning national borders, financial sectors, and currencies. The majority of the financial institutions represented in the review were involved in at least two of the banking, securities, or insurance sectors.

The Working Group among others finds that liquidity risk management is mostly separated in financial groups that contain firms operating in multiple sectors. With few exceptions, liquidity risk management is not well integrated in groups conducting an insurance business as well as banking and/or securities businesses. Groups generally have integrated to some extent liquidity risk management across the banking and securities business lines, although the degree of integration varies considerably among firms.

The Working Group also studied differences in liquidity risk management practices within individual sectors. Some of the surveyed firms indicate that regulations may have an impact on the design of their structures for managing liquidity risk. Some regulatory restrictions impede the movement of liquidity across jurisdictions; for example, regulatory restrictions may give rise to the need to maintain liquid assets in separate jurisdictions and currencies, rather than in a single pool.

Press release
Document



© IOSCO


< Next Previous >
Key
 Hover over the blue highlighted text to view the acronym meaning
Hover over these icons for more information



Add new comment