AcademyAcademyLiquidity risk, funding, ALM and the treasury desk.
A practitioner's walkthrough of the LCR, from HQLA tiers and haircuts to run off rates and the inflow cap, with a worked example you can trace line by line. By the end you can read your own PRA110 return, not just quote the headline percentage.
Liquidity risk moves in hours, and no single team holds the full picture. Here is who runs the position, who challenges it, who signs off, and why coordination is the real control.
Liquidity risk is not one number but five distinct risks that feed each other under stress. This post breaks down funding, market, contingent, intraday and structural risk, and shows how a small problem chains into a crisis.
Every liquidity rule you report against was written after a specific bank ran out of cash. This post maps each rule, the LCR, the NSFR, run off rates, HQLA definitions, the ILAAP narrative, back to the failure that caused it, so the frameworks stop feeling arbitrary and start reading as sensible answers to real problems.
A profitable, well capitalised bank can still run out of cash in days. Here is why liquidity fails so fast, and the buffers, HQLA, FTP, LCR and NSFR your treasury and risk teams use to stop it.