Liquidity Management in Banking

Liquidity risk is one of the most critical challenges in modern banking, and this course will show you how to master it. In this introduction, you will get a clear overview of what to expect across 20 in depth sessions, from core principles and regulatory frameworks to advanced tools and future trends. Whether you are new to liquidity or looking to lead with confidence, this course gives you the knowledge and practical insight to succeed.

Each lesson includes a step-by-step video and a downloadable PDF worksheet to track progress and reinforce key insights. Need support? The Industry Portal is here to help. Stay organised, engage with the materials, and set aside dedicated study time to maximise your results. The more effort you invest, the greater the value you’ll gain.

Liquidity is the foundation of a bank’s survival. Without it, even the most profitable institutions can fail in days. This session explores what liquidity really means in banking, why it matters, and how it underpins the entire financial system. You'll gain a clear understanding of liquidity risk, its role in past crises, and why managing it effectively is now a top priority for banks, regulators, and investors alike.

From the 2008 global financial crisis to the COVID-19 market shock, history has shown how quickly liquidity can vanish, and how devastating the consequences can be. This session unpacks key liquidity failures from past crises, revealing how each event reshaped global regulation, internal bank practices, and market expectations. Understand the lessons learned, the reforms introduced, and why history remains a critical guide for managing liquidity today.

Not all liquidity risk is the same. In this session, we explore the two core categories: funding liquidity risk and market liquidity risk, and how each impacts a bank’s ability to meet obligations and stay resilient under pressure. You’ll learn how banks detect, measure, and monitor these risks across their operations and why recognising the distinction is key to building effective liquidity risk frameworks and decision-making processes.

Effective liquidity management starts with the right structure. This session explores how banks organise their teams, systems, and governance to manage liquidity risk with confidence. You’ll learn how Treasury, Risk, and Finance functions coordinate responsibilities, how oversight is maintained through governance frameworks, and why strong collaboration and clear ownership are essential for resilience and regulatory compliance.

The Liquidity Coverage Ratio is a cornerstone of short term resilience. In this session, we unpack how the LCR works, what it measures, and why it is vital for ensuring banks can meet their obligations during periods of stress. You’ll explore how high quality liquid assets are managed, how outflows are projected, and how banks balance compliance with flexibility. This is your guide to managing short term liquidity with clarity and control.

The Net Stable Funding Ratio is designed to strengthen a bank’s long term resilience. In this session, you’ll learn how the NSFR promotes stable funding, reduces reliance on volatile sources, and aligns funding profiles with asset maturities. We break down how the ratio is calculated, what regulators expect, and how banks manage the trade-offs between profitability, funding efficiency, and long term stability.

The Internal Liquidity Adequacy Assessment Process is central to how banks demonstrate sound liquidity risk management. In this session, we explore what makes an effective ILAAP, how it aligns with UK and EU regulatory expectations, and what supervisors look for during reviews. You’ll gain insight into documentation, governance, scenario design, and how to present a credible, well-supported view of your firm’s liquidity resilience.

Funds Transfer Pricing is how banks turn liquidity from a back office concern into a front line decision tool. This session explains how FTP works, how it assigns value to funding, and how it influences pricing, product design, and business behaviour. You’ll learn why a well designed FTP framework is essential for aligning liquidity risk with performance management, and how it helps drive smarter, more sustainable decisions across the bank.

When liquidity stress hits, preparation is everything. This session explores how banks design and implement Contingency Funding Plans to respond quickly and effectively under pressure. You’ll learn what makes a plan credible, how early warning indicators work, and how roles and actions are defined during a crisis. This is your guide to building a robust, actionable plan that protects the bank when it matters most.

Stress testing is one of the most powerful tools in liquidity risk management. This session covers how banks design realistic scenarios, model extreme but plausible events, and use the results to inform buffers, funding strategies, and regulatory submissions. You’ll explore best practices for assumptions, calibration, and governance, and learn how stress testing supports a forward looking view of liquidity resilience.

Treasury is the engine room of liquidity management. In this session, we explore how Treasury teams oversee daily cash flows, manage liquidity buffers, and respond to market movements in real time. You’ll learn how Treasury balances regulatory requirements with commercial needs, coordinates with risk and finance teams, and plays a central role in ensuring the bank remains liquid, stable, and well positioned every single day.

Liquidity depends on access to reliable funding and usable assets. In this session, we explore the markets and instruments banks use to raise and deploy liquidity—from deposits and repos to bonds and central bank facilities. You’ll learn how different sources behave under stress, how banks diversify funding, and how Treasury teams navigate market conditions to ensure the right mix of flexibility, cost efficiency, and resilience.

Intraday liquidity is about more than end-of-day balances—it’s about staying operational hour by hour. This session explores how banks manage real time payment flows, monitor settlement risks, and ensure sufficient liquidity is available throughout the day. You’ll learn how payment systems, collateral usage, and central bank accounts interact, and why effective intraday management is critical to avoiding disruptions and maintaining confidence.

Clear, accurate reporting is the foundation of strong liquidity management. This session explores the key internal metrics banks use to monitor liquidity and the regulatory disclosures required by supervisors. You’ll learn how data is sourced, validated, and reported, how dashboards support decision making, and what makes reporting frameworks credible under both normal and stressed conditions.

Managing liquidity risk is not just about safety—it’s about making smart trade-offs. This session explores how banks balance liquidity requirements with profitability and strategic goals. You’ll learn how funding costs influence business decisions, how liquidity buffers affect returns, and how Treasury and Risk teams work with the front line to align commercial performance with sound risk management.

Real world crises reveal how quickly liquidity risk can spiral. In this session, we examine key case studies including Northern Rock, SVB, and Credit Suisse to understand what went wrong, how early warning signs were missed, and what lessons were learned. You will gain practical insight into how liquidity failures unfold, how banks and regulators respond, and what these events mean for today’s risk frameworks.

Liquidity is not always freely transferable. This session explores the challenges banks face when managing liquidity across different countries, currencies, and regulatory regimes. You will learn how legal entity structures, central bank rules, and market conditions affect access to funds, and how banks build frameworks to manage trapped liquidity, currency mismatches, and local supervisory expectations.

The liquidity risks of tomorrow are already taking shape today. This session explores how climate change, geopolitical shocks, and structural shifts in the financial system are creating new challenges for liquidity management. You will learn how these emerging risks can impact funding, market confidence, and regulatory expectations, and how banks can adapt their frameworks to stay resilient in an uncertain world.

Technology is transforming how banks manage liquidity. In this session, we explore the impact of artificial intelligence, automation, and real time data on liquidity forecasting, risk monitoring, and decision making. You will learn how digital tools are reshaping Treasury and Risk functions, what capabilities banks need to stay competitive, and how to future proof your liquidity framework in a rapidly evolving environment.

Liquidity management is entering a new era. This session looks ahead to the transformative impact of central bank digital currencies, tokenised assets, and evolving payment infrastructure. You will explore how these innovations could reshape funding models, settlement processes, and regulatory approaches, and what banks must do today to prepare for a more digital, decentralised, and dynamic liquidity landscape.