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African Banking, The 3 Biggest Risks – Liquidity, Liquidity & Liquidity
Riskworx Academy recently presented a webinar entitled “The 3 biggest risks in African Banking – Liquidity, Liquidity & Liquidity” to the member banks of Arise Investments. The Arise investment portfolio includes various banks across Sub-Saharan Africa and more than 100 representatives from these banks attended the webinar. The presenters – Illse Nell (ALM Specialist and Principal Financial Engineer – Riskworx) and Dr Gary van Vuuren (Basel Specialist and Associated Principal Financial Engineer – Riskworx) addressed 3 major topics:
Tactical vs Strategic Liquidity Management
Liquidity Stress testing and it’s link to ICAAP & LCAAP
Linking Liquidity management to Contingency Funding
The webinar also included case studies from African Banking ruined by Liquidity problems and the lessons learnt from these failures. The active participation and insights shown by participants illustrated that the threat of liquidity problems calls for a renewed focus on Liquidity risk and the need for comprehensive and well-defined Contingency Funding plans.