Liquidity risk technology trial in Asia

Regulators are clamping down on inadequate liquidity risk management techniques at financial institutions, resulting in a need for significant system overhauls. Technology providers are jumping at the opportunity, but a consensus on how best to manage liquidity risk has yet to emerge. Wietske Blees reports

With a history of triggering bank failures dating back centuries, liquidity risk should be managed with textbook-like familiarity. But nothing could be further from the truth. When, in February 2008, the Basel Committee on Banking Supervision published its findings on liquidity risk management in financial institutions in a paper entitled Liquidity Risk Management and Supervisory Challenges, the overwhelming conclusion was that most liquidity risk and asset and liability management (ALM) systems