Customer Reviews

Liquidity Risk Measurement and Management: A Practitioner's Guide to Global Best Practices (Wiley Finance)

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4 star:		(1)
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A good handbook, written by an industry practitioner, that makes a lot of difference. I found it helpful to develop a multi level view of liquidity within the various classes of banks, like large, small regional, and complex banking entities. This lays out a framework for a ALCO, Limit monitoring driven from data collected in various formats, trying to address complex issues like non-maturing product maturities.
I would recommend for the serious Treasury professional, it is an expensive purchase.

This book is a collection of a series of articles on banking funding liquidity risk. These articles are written by different practitioners including a few by editors Matz and Neu. This compilation-like format causes the flow through the book to be somewhat disruptive making it a difficult read end-to-end. As a result it is best used as a reference guide. This is not necessarily a bad thing as the book is a true treasure of funding liquidity related topics that one will need to reference from time to time.

It covers topics such as liquidity management governance and control aspects, liquidity MIS, planning, stress testing, early warning indicators and funding contingency planning, projecting cash flows for different product types including non-maturing cash flows, impact of collateral and credit risk, liquidity-at-risk measures and some case studies. A bonus is the long list of liquidity-related article references throughout that one can source to deepen knowledge on specific topics.

Let's face it, there are not many books around focussing on funding liquidity risk - if you are involved with banking funding liquidity management, this book needs to be on your bookshelf.

Mr. Matz and Mr. Neu provide insights into liquidity planning and management that are of value to bankers and non-bankers alike. While there is sufficient theory to intrigue the conceptual crowd, the book excels at providing "real world" examples and solutions. Non-bankers should strongly consider this book as well:
* bank "best practices" can be adapted and/or adopted for other financial institutions, as well as general corporates
* bank liquidity and illiquidity influences the broader economy.

If you only read one liquidity book in the marketplace, this is the one.