Liquidity Day 3 💧 Types of risk every bank must manage. #Banking #Liquidity #riskmanagement
21 April 2026·1 min
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Welcome to Day 3 of the Industry Portal liquidity management course, where we break down the different types of liquidity risk banks face and how they interact in practice.
In this session, we move from theory into structure, helping you clearly understand the building blocks of liquidity risk and why it is more complex than it first appears.
You will learn the difference between funding liquidity risk and market liquidity risk, and how maturity mismatches between assets and liabilities can create vulnerability. We explain why banks borrow short and lend long, and how sudden changes in confidence or market conditions can quickly escalate risk.
The session also covers less visible but equally important risks, including contingent liquidity risk from off balance sheet exposures such as undrawn facilities and derivatives, and intraday liquidity risk driven by payment timing and settlement flows.
We explore structural liquidity risk and how funding concentration, currency exposure, and reliance on short term markets can create long term weaknesses in a bank’s balance sheet.
You will also gain insight into how banks identify and monitor these risks using tools such as cash flow projections, liquidity buffers, stress assumptions, and real time monitoring.
By the end of this session, you will understand how different types of liquidity risk combine and why effective management requires a holistic, forward looking approach.
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Subscribe for the full liquidity management course.
#LiquidityRisk #LiquidityManagement #Banking #Finance #Treasury #RiskManagement #FundingRisk #MarketRisk #TheIndustryPortal
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