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|Event Name:||Basics of Liquidity- What is it? What Risks Does It Contribute to Your Capital Plan & Funding Needs?|
|Date:||Tuesday, March 21, 2017 2:00pm CDT|
|Presented By:||Farin & Associates|
|Panelist(s) Info:||David Koch - President & CEO, Farin & Associates (Bio)
Dave Koch is an industry lecturer and consultant for the financial institution industry. He has delivered educational programs for national and state industry trade groups, in addition to several Federal Home Loan Banks and Corporate Credit Unions. He serves on the faculty of the Graduate School of Banking at the University of Wisconsin and has served as faculty of the CUNA Management School in Madison WI. Since joining Farin in 1993, Mr. Koch has been a frequent speaker on asset/liability and interest rate risk management to financial executives across the country. In addition to the speaking roles, Mr. Koch consults with financial executives to help find creative solutions to their business challenges.
|Credits:||Earn up to 2 hours of CPE credit.|
Regulatory concerns over liquidity have heightened after the financial crisis of 2009. During that crisis, many institutions lost access to funding sources due to many contributing factors, that ultimately led to mergers and failures. While such an extreme situation is rare these days, liquidity remains among the most important factors in managing a financial institutions growth and profitability. Liquidity limits how fast an institution can grow assets. Loan growth rates in robust economies have traditionally outgrown deposit growth rates, putting pressure on institutions to find ways to increase funding sources, often using wholesale of “non-core” funds. These sources carry “credit risk” much like a loan customer in that the continued availability depends on the institution’s credit worthiness.
In this session we will define two items often confused for one another, liquidity and funding. We will discuss the regulatory and institutional approaches for measuring liquidity and discuss what factors are key in managing uses of various sources. Factors such as seasonal patterns for loans or deposits growth, or the types and structures of loan and investment choices impact the overall liquidity levels. Understanding the difference between liquidity and funding needs requires a set of tools that not only look at the current position, but analyzes the trends and patterns over time.
After attending, participants should be able to discuss and apply the following:
Who Should Attend
Level: Basic to Intermediate
Farin & Associates is registered with the National Association of State Boards of Accountancy as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses. Complaints regarding sponsors may be addressed to: The National Registry of CPE Sponsors, 150 Fourth Avenue, North, Suite 700, Nashville, TN 37219-2417 Web: www.nasba.org.