New York, NY, December 02, 2009 --(PR.com
)-- The recent brush with financial catastrophe underscores the need to lay out effective risk management guidelines for financial institutions. On June 30th, 2009, The Interagency Guidance on Funding and Liquidity Risk Management was issued by The Office of the Comptroller of the Currency (OCC), The Board of Governors of the Federal Reserve, The Federal Deposit Insurance Corporation (FDIC), and The National Credit Union Administration (NACUA) to help regulate funding and liquidity risk issues and step up industry liquidity risk management (LRM) practices. The goal of the guidance is to encourage bank liquidity risk management practices to be more similar to the liquidity risk principle issued by the Basel Committee on Banking Supervision (BCBS) in 2008. Currently, the BCBS principles are primarily for large institutions; however, when the new guidance is finalized, it will apply to all domestic financial institutions which would include banks, thrifts, and credit unions.
This guidance aims to be more direct with respect to liquidity risk management practices including citing the absence of a good LRM program as the basis of the declaration of an unsafe and unsound financial practice. Financial institutions will be required to have a complete and thorough risk management program in place which identifies measures and controls risk. Firms will be required to have realistic and thorough cash flow projections with a diverse asset portfolio and solid capital reserves.
When, what and how these new regulations will affect the industry and individual firm is the subject of much discussion. The Knowledge Group, LLC assembled a group of key thought leaders and experts to help you understand the impact of this new guidance and how it may impact your firm.
Gregory S. Feder, Of Counsel, Latham & Watkins LLP
Kyle Hadley, Chief of the Examination Support Section, Capital Markets Branch, Federal Deposit Insurance Corporation
Peter B. Marshall, Financial Services Risk Management, Ernst & Young LLP
Mary Frances Monroe, Vice President, Office of Regulatory Policy, American Bankers Association
For more information , please visit: http://www.knowledgecongress.org/event_2010_Liquidity.html
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The Knowledge Congress is a series of live webcasts produced by The Knowledge Group, LLC, which examine trends, regulatory, and technology changes across a variety of industries. “We bring together the world's leading authorities and industry participants through informative two-hour webcast that study the impact of changing regulations and help businesses succeed through proper regulatory compliance.”