PhD Studentship – This project has now been completed but reviewed the ways in which different types of liquidity affect the operations of a bank and the extent to which various regulatory requirements add additional constraints to the operations of banks

The issue of liquidity, both in connection with pricing the obligations of a bank and in managing its risk, has attracted significant attention from regulators and the management of banks themselves. 

Regulators have had to look at how liquidity risks affect both the individual banks and the financial system and are designing reporting requirements and capital adequacy obligations that (will) have a major effect on the operation and strategic direction of bank activities. 

Such obligations have started to take into account the interconnectedness of the bank within the system, its own sensitivity within that network to liquidity constraints caused by other banks and the impact the bank itself would have on the network if it were to run into liquidity constraints. One example of the new regulatory requirements is the Liquidity Coverage Ratio being introduced in Basel III and the impact of this is being discussed throughout the banking sector.

The research extended to developing a model for how banks can comply with various types of regulatory constraint and reporting requirements and steer their balance sheets and operations in a way that achieve business objectives

ARC research project: Banking Liquidity Risk
ARC scholar:  Iain Ritchie
University:  Heriot Watt University 
Period of research:  September 2012 – November 2016
This project has now been completed
Industry sponsors:  Hymans Robertson
​Academic supervisors:    Andrew Cairns, Alex McNeil
Outputs:

You might also like

Contact Details

If you have any questions or wish to discuss any aspect of research carried out through the Actuarial Research Centre (ARC), please contact the Research and Knowledge Team.

arc@actuaries.org.uk

Filter or search events

Start date
E.g., 01/10/2020
End date
E.g., 01/10/2020

Events calendar

  • Autumn Lecture 2020: Professor Elroy Dimson

    Online webinar
    14 October 2020

    Spaces available

    Many individuals and institutions have a long-term focus, and invest funds for the benefit of future generations. Their strategy should reflect their long horizon. University endowments are one of the oldest classes of institutional investor, and I will present the first study of the management of these endowments over the very long term.

  • GIRO Conference 2020 Webinar Series

    Available to watch globally in November.
    02-13 November 2020
    Spaces available

    This year's GIRO has been re-designed as a virtual conference to offer members and non-members the opportunity to get up to date content from leading experts in the general insurance field via online webinars. All sessions will be recorded and made available to purchase and re-watch post-event on the IFoA's GI Online Learning Resource area

  • Life Conference 2020 Webinar Series

    Online
    16 November 2020 - 27 November 2020

    Spaces available

    This year's Life Conference has been re-designed as a virtual conference to offer members and non-members the opportunity to get up to date content from leading experts in the life insurance field via online webinars. All sessions will be recorded and made available to purchase and re-watch post-event on the IFoA's website.

  • Spaces available

    The webinar will discuss the challenges and opportunities schemes face in evaluating end game options, choosing a target state and understanding the impact this strategic decision could have on member outcomes long after the “end state” is reached. Adolfo, Kevin and Rhian bring over 60 years of experience in the industry and a variety of perspectives as scheme actuary, covenant adviser, trustee, de-risking adviser and insurer.

  • Spaces available

    Cash-flow driven investing is a game-changer for DB pension funds navigating their end-game. Suitable for sponsors who want to reduce risks on their balance sheets. And for trustees, it shifts the focus to providing greater certainty of returns, managing funding level volatility and ensuring they have enough income to pay cash-flow requirements.

  • Spaces available

    Patrick Kennedy, Partner at Gateley Legal and Founding Director of Entrust (a leading professional pensions trustee company), will be delivering an update on the latest legal developments during the course of 2020. With both a pensions legal perspective and over 25 years of trustee service, Patrick will seek to highlight how the letter of the law has continued to evolve against the backdrop of a difficult and challenging year

  • Spaces available

    The talk will provide an understanding of the priorities and relationships between deficit reduction contributions, in the context of wider scheme funding, and different types of value outflow from the employer based on the working party’s recently published report.