#1: Treasury Risk Mitigation Strategies Amidst Market Turbulence

13 Apr

26th April 2023

With:

| David Minch-Dixon (Deutsche Bank)

| Peter Left (Lloyds Banking Group)

In Session #1, David Minch-Dixon (Head of Balance Sheet Management, Deutsche Bank) and Peter Left (Head of Digital & Market Innovation, Lloyds Banking Group) join FNA to dissect the "stress test" of early 2023. Following the collapse of Silicon Valley Bank and the forced merger of Credit Suisse, treasury departments were forced to move beyond theoretical models and into active, real-time defense.

Our guests explore how the traditional treasury mandate is shifting from passive balance sheet management to a dynamic, risk-aware culture. The discussion centers on the "Liquidity Squeeze" caused by rising interest rates and the accelerating speed of digital bank runs. By sharing insights into their own evolving funding strategies and transfer pricing frameworks, David and Peter offer a masterclass in maintaining institutional resilience when market confidence is at its most fragile.

Key Discussion Points:

The 2023 Wake-Up Call: Analyzing the impact of the SVB and Credit Suisse events on the prioritization of liquidity risk at Deutsche Bank and Lloyds.
Dynamic Funding Strategies: How to manage the balance sheet and funds transfer pricing (FTP) in a rapidly rising interest rate environment.
The "Speed of Digital" Problem: Why the acceleration of deposit outflows in the smartphone era requires treasurers to have real-time, rather than T+1, visibility.
Fostering Risk-Aware Culture: Moving risk management out of the "back office" and ensuring it is embedded in every commercial decision across the bank.
Prudential Evolution: Lessons in prudential liquidity management and how internal stress-testing scenarios must now account for "social-media-driven" bank runs.
Digital Money Readiness: Insights from Peter Left on how the move toward digital assets and tokenized collateral will fundamentally change future liquidity buffers.

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