Liquidity risk, funding, ALM and the treasury desk.
A contingency funding plan is only as good as its execution on the first morning of a crisis. This post works through every element a CFP must contain and how banks actually act when normal funding assumptions stop holding.
Funds Transfer Pricing is the mechanism that makes the cost of internal liquidity visible at the point where it is created. This guide covers how FTP charges and credits work, how to build the FTP curve, and what separates a well designed framework from one that actively misprices risk.
The LCR and NSFR tell regulators what your liquidity position looks like. The ILAAP tells them whether you actually understand and manage it. This post sets out what supervisors expect to find in a credible ILAAP and where firms most often fall short.
The Net Stable Funding Ratio asks whether your balance sheet is structurally sound over a one year horizon, not just whether you can survive the next 30 days. This post works through ASF weights, RSF factors, an illustrative calculation, and what the ratio means for FTP design and funding strategy.
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.
