Liquidity Risk Management, Mumbai

Organized by: Vinod Kothari Consultants P Ltd

Kolkata Office: Mumbai Office:

Krishna Building, Room No 1012, 601 – C, Neelkanth

224, AJC Bose Road 98, Marine Drive

Kolkata- 700017 (India) Mumbai 400 002 (India)

Phone: +91-33- 22817715/ 1276 / 3742 Phone: +91-22-22817427

TBA

A key point of success of the entire financial industry is the liquidity

management strategy. Poor liquidity management will have critical impact on

the existence of the banks and financial institutions and can also lead to

systemic risks

This Workshop highlights the basic of the Liquidity Risk, followed by the

analytical overview. It would also provide the participants a brief on Liquidity

Risks in Asset Liability Management.

Furthermore, this workshop will cover the key areas of funds transfer pricing,

stress testing, contingent planning and the new regulatory requirements.

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Why this workshop?

For Whom?

Banks

Asset management companies

Investment funds

Regulatory bodies

Trust companies

Mortgage loan companies

Financial Consulting Firms

Business Consulting Firms

Solution Providers

The fee for this workshop is Rs. 20000/-

per participant and for overseas

participants USD 500 per participant.

Gradation discount is applicable for 3 or

more participants from the same

organization.

Course fee includes:

Tuition fees, Course Material

Lunch and snacks during the breaks

Your Investment?

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Course Outline

Session 1: Liquidity Risk:

Why Liquidity Risk is in the focus of financial institutions world-wide?

Liquidity risk in the context of the financial crisis

Relationship between liquidity and solvency

Session 2: Analytical Overview/ Governance:

Forms of liquidity

Defining liquidity risk : funding and market liquidity

Strategy for liquidity risk, policies and practices

Inter-relationship between liquidity, credit, market (interest rates), operational, legal and reputation risks

Relevant parameters affecting liquidity status

Session 3: Liquidity Risk in Asset Liability Management:

Sound practices for measuring and managing liquidity risk

Asset & Liability Management in the modern environment

Scope of Asset/Liability Management function

Optimizing and managing the balance sheet – Purpose & Roles of ALCO:

Managing Interest Rate & Currency Risk

Funding and Capital Planning

Profitability

Net Interest Income

Organizational issues

Case Study

Session4: Funds Transfer Pricing:

Overview of FTP

Improvement of cash flows, earnings, risk and value through FTP

Alternative methods and addressing FTP objectives

Approach for implementation of FTP mechanism

Using the FTP for performance forecasting and measuring branch profitability

Incentives, policies and procedures

Session 5: Liquidity Risk Measurement:

The components of the balance sheet

The liquidity balance sheet

Liquidity Gap Analysis

Cash Flows

Cash flow forecasting

Deterministic and stochastic behaviour of instruments

Types of maturities

Statistical techniques

Simulation techniques

Liquidity at Risk & Liquidity Value at Risk

Case Study 3 Session 6: Managing Liquidity Risk – Metrics & Limits:

Range of liquidity metrics

Types of liquidity measures

Liquidity ratios

Concentrations

Management Information System/ Internal reporting

External communication

Examples from large international banks

Strategies for banks

Session 7: Liquidity Risk Stress Testing:

Stress Test Parameters

Basel principals for stress testing

Implement Stress Testing in various scenarios

How stress tests fit into the ICAAP

Impact of ICAAP Session 8: Contingency Funding Plan:

Potential Funding Sources

Measures To Enhance The Liquidity Of Assets And The Stability Of Liabilities

Reliability Of Each Liquidity Source For Various Potential Need Environments

Funds Management And Liquidity Monitoring Process

Early indicators

Back-up liquidity

DAY 1

DAY 2

Associate

Vinod Kothari Consultants Pvt Ltd

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Faculty

PRALOY MAJUMDER

Prof Praloy Majumder, a former banker, experienced trainer and finance academician has to his credit a vast experience in conducting large number of training workshops on various financial topics such as introduction to financial markets, corporate lending practices, risk management, derivatives, essential quants for financial professionals, etc. Prof. Praloy Majumder is a bachelor in Pharmacy from Jadavpur University. He completed his Post Graduate Diploma in Business Management (MBA) from Indian Institute of Management Calcutta (IIMC) with Finance specialisation. Praloy Majumder started his professional career as a banker, with Syndicate Bank. Then he worked with ICICI Bank Limited, one of India’s largest banks. He has looked after a variety of functional areas including Branch Operations, Corporate Banking, Trade Finance, and Treasury Operations. In 2001, he was in charge of Banks corporate banking portfolio for Mid Cap clients in Eastern India. In the year 2001, he joined Alumnus Software Limited, a software company engaged in the development of high-end soft ware as its Chief Financial Officer. He looked after the entire finance and accounts function of the company. Prof Majumder is currently in freelance consulting and training in the field of finance. He is the most engaged faculty in India specially in the Banking and Finance domain . He is associated with Crisil a S&P Company , Dun and Brad Street , Vinod Kothari Consultants P. Ltd etc. As such, he holds nearly 240 man-days of training every year and trains bankers and finance professionals at all levels. In addition, he is also a visiting faculty at the Indian Institute of Management Calcutta, one of India’s top business schools, where he teaches both students at post-graduate level, as also executives undergoing management programmes. Past Testimonials : “The uniqueness of Prof. Majumder is to explain the most difficult things in very lucid way . I have learned a lot from the course on Risk Management carried out by the Professor.” - Assistant Vice President of a Multinational Bank “Professor Majumder explains finance in a very lucid way. Besides he teaches from the pro active dimensions i.e. what would likely to happen in the market.” - Vivek Sharma, SBU head of Water Division of Thermax Group . “Strongly recommend the course under the instructor of Professor Praloy Majumder.”- Student of Indian Institute of Management Ranchi “Your OVERALL RATING for the Course in terms of its intellectual challenge and impact on learning/development in the Programme of IIM Ranchi : 4.76 out of 5.” - PGP Office of IIM Ranchi

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Please send your cheque for the participation fees along with the following details to the address

mentioned above. Registration shall be confirmed on the realization of the cheque.

For more details please drop a mail to pooja@vinodkothari.com or nidhi@vinodkothari.com

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Registration Form

Participation Fees: Rs. 20,000/- per participant

For Overseas Participants’ USD 500/- per participant

Gradation Discount: Only If more than 3 participants

from the same organization

Cancellations made prior up to 5 days before the event will be entitled to a refund of 75%

of the fee paid. No refund will be made for cancellations post that or for no show.