Category Archives: HQLA

What do the proposed changes to the supervision of liquidity and funding risks in the UK mean?

By | December 11, 2019

Courtesy of Mete Feridun When it comes to changing UK liquidity regulations, each round of revisions – such as the liquidity coverage ratio, net stable funding ratio, and the cash-flow mismatch risk framework – typically makes funding and liquidity risk management more complex and costly for firms. However, the Prudential Regulation Authority’s (PRA) recent consultation paper… Read More »

The Impact of Liquidity Regulation on Broker-Dealer Stability

By | October 17, 2019

Courtesy of Marco Macchiavelli and Luke Pettit At the peak of the cycle in 2006, broker-dealers (dealers hereafter) were involved in originating, distributing and financing mortgage-related instruments, which exposed them to significant risks at the turn of the housing cycle in early 2007. To make things worse, they were financing a significant portion of these… Read More »