
Explore the global economic crisis and liquidity management, from Great Depression history to 2007-2008 bailouts and lessons. Learn liquidity risk, reporting, stress testing, LCR Basel III, and balance sheet governance.
Explore the global crises from the 1970s oil shocks and stagflation to the dot-com bust, the 2007-08 subprime crisis, and the Greek debt crisis and bailouts.
Explore how the Fed's tight monetary policy reduced money supply, spurred a dollar run, and bank failures. Roosevelt's New Deal and later rescues show why expanding money supply aided recovery.
Explore the 1929 market crash and ensuing depression through a photo essay, showing Black Tuesday's 16 million shares traded, bank closures, unemployment, and California migrant workers.
Examines the great recession of 2008 caused by the subprime mortgage bubble, detailing lax lending, securitization into mbs and cdos, and implicit government guarantees, with key rescue moves and lessons.
Examine how securitization pools mortgages into mortgage-backed securities and collateralized debt obligations, with insurance and credit default swaps, supported by tranches and special purpose vehicles that pay investors.
Explore how credit default swaps transfer credit exposure, pricing premiums, and protect against default events, using reference bonds, recovery rates, and hazard-based valuation.
This lecture explains how subprime mortgages, securitization, CDOs, and CDS triggered 2008 credit crunch, defaults, and bank failures, including Lehman Brothers' collapse and Bear Stearns' acquisition by JPMorgan Chase.
Trace the continued credit crunch behind the 2008-2011 bank collapses, FDIC sales to JP Morgan Chase, and massive real estate and stock losses, with rising unemployment.
In 2008, the United States passed the Emergency Economic Stabilization Act to spend $700 billion buying distressed assets, including mortgage-backed securities, and bail out banks.
Assess liquidity risk and its management by understanding inability to meet short-term obligations and illiquid assets. Evaluate funding mix, maturity mismatches, external factors, and counterparty risk to mitigate losses.
Learn to manage liquidity by forecasting withdrawals and funding needs, ensuring cash at branches and settlements, and balancing funding from retail, borrowed, wholesale, and equity sources.
Explore how banks fund liquidity through cash, marketable securities, repos, lines of credit, and commercial papers, while highlighting Basel principles for structured, measured, and monitored liquidity risk management.
Explore how stress testing evaluates bank liquidity under adverse scenarios, including illiquid assets, funding run-off, margin calls, and off-balance sheet risks, and how a bank-wide framework manages liquidity and solvency.
Identify warning indicators of liquidity risk, such as rapid asset growth with volatile liabilities. Show how liquidity reporting, stress tests, and contingency plans support risk management.
Explore Basel III's liquidity coverage ratio (LCR): mandate to hold high quality liquid assets to cover thirty-day net cash outflows, using level one, level two, and level two a/b categories.
Explore the net stable funding ratio under Basel III, comparing available vs required stable funding, including off-balance-sheet exposures and funding tenors to ensure resilient liquidity.
Explain the ASF under NSRF: 100% for long-term capital and liabilities over one year; 95% and 90% for various deposits; 50% for sovereign funding; 0% for ultra-short liabilities.
Explain how NSFR determines required stable funding for assets and off-balance sheet exposures, detailing asset categories, encumbrance, maturities, and OBS contingencies.
Coordinate liquidity across the organization by aligning data, operations, and asset liability management to govern balance sheet liquidity. Treasury, CFO, and CRO lead governance, measurement, and monitoring under Basel III.
Explore the evolution of financial crises from World War I to the 2008 subprime crisis and analyze liquidity risk, Basel III principles, and the tools for managing liquidity in banks.
There are various types of risks that a business faces and to it important to deal with them correctly and in time. They require to be predicted and then controlled in a way that it does not affect their business. These tutorials will help you learn about liquidity and its management and also analyze the outcomes of global economic crisis.
The training will include the following;
Introduction
History of Economic Crisis
The Great Depression of 1929
The Financial Crisis of 2008- Causes
The Financial Crisis of 2008- Impact
The Financial Crisis of 2008- Govt intervention
Lessons Learned
Liquidity Risk
Liquidity Management
Liquidity Reporting
Liquidity management is one of the main pillars of a company's financial management, because it ensures solvency. Here we show you why it is so important for companies, how it works in principle and how companies can implement it in practice. Investors, lenders, and managers all look to a company's financial statements using liquidity measurement ratios to evaluate liquidity risk. This is usually done by comparing liquid assets—those that can easily be exchanged to create cash flow—and short-term liabilities. The comparison allows you to determine if the company can make excess investments, pay out bonuses or meet their debt obligations. Companies that are over-leveraged must take steps to reduce the gap between their cash on hand and their debt obligations. When companies are over-leveraged, their liquidity risk is much higher because they have fewer assets to move around. Almost five years since the collapse of Lehman Brothers and the start of the global financial crisis, the global economy continues to feel the aftershocks. Policymakers continue to grapple with the policy response. The start of 2013 saw tail risks recede in the global economy, thanks to policy actions in the U.S. and euro area. While financial market conditions have improved markedly across the board for the last half year or so, the real economy continues to lag. We still are not seeing the levels of growth needed to drive a real global recovery, and we are not generating the jobs needed for the millions who have fallen into unemployment over the past five years.