The 2009 Forum Agenda
09.45 - 10.30
Panel 1: Global vs Local Liquidity Management – at what level is liquidity self-sufficiency desirable?
In formulating liquidity risk management policies for branches/ subsidiaries of foreign banks in their jurisdictions, national financial regulators have varied in their approach to the level at which liquidity sufficiency has to demonstrated. Some permit global management of liquidity (with increased oversight and cooperation with host regulators) whilst others have insisted strictly on local, legal entity level self-sufficiency.
Interestingly, some banks have always advocated a local, federal, approach to liquidity management. Others strongly believe in the efficiencies and advantages of global liquidity pools.
What will be the industry trend? We explore what might be the optimal approach.
| Moderator: | Brooke Masters, Chief Regulation Correspondent, Financial Times |
| Panellists: |
Julian Slow, Head of Asset and Liability Management, Western Hemisphere, Standard Chartered Bank Mike Anderson, Head of Group Asset & Liability Management, HSBC Group Odomar Vancreayenest, Global Head Of Liquidity Risk Management, Deutsche Bank |
11.00 - 11.45
Panel 2: Liquidity Stress Testing – the newest piece of kit in the risk management tool-box:
Before the crisis of the past 24 months stress testing was not a common risk management exercise for many bank risk management departments. In today’s regulatory world it has become a mainstream requirement. It is a new technique for many – what will be the challenges in its implementation in respect of liquidity risk?
Will stress testing become merely a tick-box exercise?
Should risk managers use regulatory coefficients and scenarios or develop bespoke scenarios?
Will dynamic scenarios and second order or reflexive stress testing develop soon?
Is looking forward, as opposed to working with data based histories, too much to ask of the risk management community?
Can the industry learn to derive predictive value from scenario analysis and management engagement?
| Moderator: | David Vander, Director, Liquidatum |
| Panellists: |
Stefan Friberg, Deputy Head of Risk Control, SEB Marco Lichtfous, Member of BCBS committee on Liquidity Risk for Bank of Luxembourg Arno Kratky, Head of Liquidity Risk, Commerzbank Nick Turner, Co-President, Global Business Network |
11.45 - 12.30
Panel 3: Disclosure – transparently improving?
In the last two years there has been a significant increase in the volume of information being published by banks in respect of liquidity risk. In this sense, Pillar III type mechanisms are working with the market demanding more confidence giving information and banks producing significantly more liquidity risk related items.
Has this increase in the volume of liquidity related disclosures been accompanied by an increase in the quality of information available to market participants? Is quarterly and mid-year reporting of a similar standard to “final” accounts?
| Moderator: | Ed Firth, Managing Director, Financial Communications (UK) |
| Panellists: |
Matthew Hegarty, Senior Credit Analyst, Fidelity Investments Matthew Rees, Senior Credit Analyst, Legal & General IM Mark Gossage, Head of Data, Liquidatum Justin Fox, Head of Treasury Markets, Nationwide Building Society |
14.00 - 14.45
Panel 4: The Academic Panel
Bank capital management has been socialised. This is the conclusion of many commentators regarding the guaranteeing of banks performance that has taken place over the past year. Banks have been, and are being, permitted to be capital deficient.
As more and more regulators, including the UK’s FSA, publish their plans to force banks to hold larger liquid asset buffers, it seems as though bank liquidity management has been privatised. Banks are being forced to be liquidity self-sufficient.
Does this contradiction in the central message from government to banks run counter to some of the oldest tenets of central banking? Would Walter Bagehot approve?
| Moderator: | Jonathan Laredo |
| Panellists: |
Professor Charles Goodhart, Dierctor of the Financial Regulation Research Programme, The London School of Economics Professor Geoffrey Wood, Professor, Cass Business School |
14.45 - 15.30
Panel 5: Quantitative Liquidity Risk Measures – will they add up to much?
The recent BCBS proposals on liquidity risk management included, for the first time, some quantitative measures for bank liquidity to which banks will have to adhere over the medium term.
Are these proposals useful? Do they represent the maximum level of complexity upon which the various national regulators could agree or do they represent a true minimum level of liquidity that banks should be required to warehouse?
Will, one-size-fits-all ratios be useful in the diversified world of retail, corporate, investment, trust, local and global banking?
| Moderator: | Stefan W. Schmitz, Member of CEBS and ESCB Task Forces on Stress Testing and Contingency, Oesterreichische Nationalbank |
| Panellists: |
Fred Mouchel, Head of Treasury EMEA, JPMorgan Chase Jürgen Rauschmeier, Head of Global Liquidity Management, RZB Jose Brandao De Brito, Head of Markets Research, Millenium BCP Bill Rickard, Head of Strategy and Policy, RBS |
16.00 - 16.45
Panel 6: What does the future hold for Liquidity Risk Managers?
With, hopefully, the eye of the financial storm of 2007/08 having past overhead, and with the first round of regulatory pronouncements now discussed, consulted upon and in the process of becoming law, we examine what will be the main focus of liquidity risk manager’s attention in the coming year.
From the outside we see that the days of “fire-fighting” and tactical responses are nearly over. Are banks taking a more strategic approach to liquidity risk – we ask three senior figures from the industry to opine and predict the shape of the changing landscape for liquidity risk management?
| Moderator: | Bill Cuthbert, Director, Liquidatum |
| Panellists: |
Thierry Roland, Group Treasurer, HSBC Group Damian Harland, Prudential Risk Division - ALM & Liquidity, FSA Tim Buenker, Policy Advisor—Prudential & Risk, British Bankers Association |