Today’s FNA Talk is dedicated to one of most important topics for the banking sector – with FNA’s President Phillip Straley, and Jesse Drennan, Senior Vice President at HSBC discussing key developments in the area of intraday liquidity management.

Background

Active management of intraday liquidity in banks has become much more critical over the decade plus since this 2008 crisis. Regulators have substantially increased expectations both on liquidity levels and with respect to banks’ capabilities for measurement, monitoring & management of intraday liquidity. At the same time, the market has changed substantially. Challenger banks and challenger FMIs (including new forms of payment and settlement mechanisms) are placing new competitive demands on large international banks at the same time as they open up new market opportunities for these banks. Likewise – new technologies for liquidity monitoring, active liquidity management and advanced analytics  are opening up new avenues for banks to take better advantage of these market opportunities.

Index

00:00 – Introduction

02:33 – How do you see the market dynamics of 2020 impacting the plans of large global banks?

05:13 – What have been the key focuses related to intraday liquidity in the market over the last 2-3 years, and what do you see as priorities for the next year or two?

09:39 – How are challenger financial institutions impacting the market & banks’ thinking? – particularly from the standpoint of impact on client expectations and systemic risks?

14:54 – Looking forward… Can you describe “End State” outcomes in the market ? And what does this mean for individual large bank’s capabilities?

19:10 – Could you provide a summary of how you see internal processes optimized, plus any final points on the broader ecosystem?