Interest rate risk and Internal Liquidity Adequacy Assessment Process: Difference between pages

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The risk associated with a change in interest rates.  
''Bank supervision - liquidity risk.''


(ILAAP).


This may take several forms in the treasury context.
The Internal Liquidity Adequacy Assessment Process of a bank takes the form of a document which:
*Provides details of how the bank manages its liquidity position; and
*Explains the bank's management and control processes.


For example, and depending on the direction of the change, increasing interest cost, falling interest income, changing market value of debt or of pensions liabilities, differences in competitiveness, or the changing nature of a market when interest rates change.
 
It is approved by the bank's management body, and submitted to the regulator as part of the regulator's liquidity review of the bank.




== See also ==
== See also ==
* [[Asset-liability management]]
* [[Bank supervision]]
* [[Double-whammy]]
* [[Governance]]
* [[Exposure]]
* [[ILAA]]
* [[Interest rate]]
* [[Internal Capital Adequacy Assessment Process]] (ICAAP)
* [[IRHP]]
* [[Liquidity management]]
* [[Matching]]
* [[Overall Liquidity Adequacy Rule]] (OLAR)
* [[Pipeline risk]]
* [[Supervisory Review and Evaluation Process]] (SREP)
* [[Portfolio hedging]]
* [[Risk free rate of return]]
* [[Time bins]]
* [[Guide to risk management]]
 
 
=== Other resources ===
 
[[Media:2015_05_May_-_The_devil_is_in_the_detail.pdf| The devil is in the detail, The Treasurer, 2015]]


[[Category:Accounting,_tax_and_regulation]]
[[Category:The_business_context]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]
[[Category:Manage_risks]]
[[Category:Risk_frameworks]]
[[Category:Risk_reporting]]
[[Category:Liquidity_management]]

Latest revision as of 11:32, 25 June 2022

Bank supervision - liquidity risk.

(ILAAP).

The Internal Liquidity Adequacy Assessment Process of a bank takes the form of a document which:

  • Provides details of how the bank manages its liquidity position; and
  • Explains the bank's management and control processes.


It is approved by the bank's management body, and submitted to the regulator as part of the regulator's liquidity review of the bank.


See also