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4 - AAU - Accounting and Financial Auditing


AAU 327 - Internal Liquidity Adequacy Assessment Process (ILAAP)

Code Start Date Duration Venue
AAU 327 21 October 2024 5 Days Istanbul Registration Form Link
AAU 327 25 November 2024 5 Days Istanbul Registration Form Link
AAU 327 30 December 2024 5 Days Istanbul Registration Form Link
AAU 327 06 January 2025 5 Days Istanbul Registration Form Link
AAU 327 03 March 2025 5 Days Istanbul Registration Form Link
AAU 327 28 April 2025 5 Days Istanbul Registration Form Link
AAU 327 23 June 2025 5 Days Istanbul Registration Form Link
AAU 327 18 August 2025 5 Days Istanbul Registration Form Link
AAU 327 13 October 2025 5 Days Istanbul Registration Form Link
AAU 327 08 December 2025 5 Days Istanbul Registration Form Link
Please contact us for fees

 

Course Description

 Governments, regulators, shareholders and the public have placed increasing pressure on financial institutions to evaluate their financial resilience. In particular, liquidity survival strategies are now crucial. In “Taking Short Lending Long” business of banking, liquidity is essential for a bank. Banks have to identify, measure, manage and monitor liquidity and funding risk and have sufficient liquid assets to function in business as usual environments and to survive in liquidity stresses. The main purpose of the Internal Liquidity Adequacy Assessment Process ILAAP is to demonstrate “overall liquidity adequacy” and ability of the bank to manage its liquidity requirements. The internal liquidity adequacy assessment process (ILAAP) regime is an important part of the bank supervision regime, and a cornerstone of Basel and CRD regulatory principles. A good ILAAP reduces uncertainty on banks and increases the confidence in the market. The ILAAP should describe the type of liquidity risks the bank will face, the board’s liquidity risk appetite and lay out its strategy for implementing it e.g. the type deposits the applicant will accept, the expected inflows and outflows of liquidity and the liquidity buffer that it expects to hold to counterbalance net outflows. This course provides a complete and detailed view of ILAAP with fundamental principles and applications in a bank, providing an understanding of liquidity risk management practices and the application of the ILAAP framework.

 

Course Objectives

  • Explaining ILAAP concepts
  • Reviewing ILAAP Report
  • Contingency Liquidity Plan
  • Combining ILAAP and ICAAP
  • Supervisory Review and Evaluation Process - SREP
  • Learning Liquidity Optimization to meet risk appetite and performance targets
  • Understanding regulatory requirements
  • Possible changes in regulations re Liquidity after recent bank failures

Who Should Attend?

  • Executive Managers
  • Finance and Accounting  Managers
  • Risk Managers
  • Asset and Liquidity  Managers
  • Treasurers
  • Risk Controllers
  • Internal Auditors

Course Details/Schedule

Day 1

  • Fundamental concepts in ILAAP
  • Why are banks special?
  • Impact of liquidity requirements
  • Costs of liquidity requirements
  • Benefits of liquidity requirements
  • ILAAP Principles 
  • SREP framework

Day 2

  • The nature and purpose of liquidity
  • Different types of liquidity
  • Regulatory liquidity requirements
  • Liquidity Ratios
  • Pillar 1, Pillar 2 and ILAAP 
  • High Quality Liquid Assets (HQLA)

Day 3

  • Liquidity Stress Testing
  • Behavior of customers under normal and stressed conditions.
  • Accounting for liquidity risk
  • Liquidity flows
  • Defining liquidity limits
  • Liquidity pitfalls

Day 4

  • Liquidity coverage ratio (LCR) 
  • Net stable funding ratio (NSFR)
  • Intraday liquidity management
  • Liquidity and Funding Planning
  • Liquidity Contingency Plan

Day 5

  • Liquidity Premium and Funds Transfer Pricing
  • Liquidity Optimization, Maintaining Performance and Profitability
  • Managing bank liquidity in the context of business goals and financial policies
  • Liquidity as cause of bank failures
  • Bank Recovery and Resolution Plans
  • Challenges for banks given recent bank failures

 

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