Liquidity Analyst

Applying and Interviewing for a Liquidity Analyst position in Treasury/Balance Sheet Management department in my current bank.

It requires you to know LCR, NSFR, NCCF…

I mean, I googled them online and understand how the ratios are calculated…what else should I know?

I should know why a bank needs these reports? Well… liquidity is fundamental for a bank and these reports measure how resilient a bank would be under a crisis period right?

What would happen if a bank fails to meet the regulatory requirement? I.e. having a LCR below 100% under normal market environment?

What more I should know about the business?

Do you understand the basic concept of maturity transformation and the related risks associated? Are you familiar with the various funding sources available to banks and how they differ? I can infer what size bank you are applying at based on the ratios, but whether the bank is measured in billions or trillions may influence the information I’d want to be up on

Hmmm…from my reading during these couple of days…

Maturity transformation is the practice of a bank using short-term deposits to lend out long-term loans. The main risk associated is liquidity risk. When a bank suddenly faces an increasing amount of deposit withdrawal, does it have sufficient liquid asset to honor this liability? Or when a bank suddenly receives a downgrade from a rating agency, does it have enough security/cash to fulfill an increased collateral requirement? A bank’s main funding sources include deposits and wholesale funding. It is one of the big 5 banks…

This is a regulatory bank role . Middle office . You at Cap one Kid?

Nope. One of the big 5 (TD, BMO, RBC, Scotia, CIBC). You are right. One of the main functions involves producing regulatory reports related to liquidity measurement/management.

Nope. One of the big 5 (TD, BMO, RBC, Scotia, CIBC). You are right. One of the main functions involves producing regulatory reports related to liquidity measurement/management.

Worked for a couple of years in liquidity and interest rate risk at one of Australia’s big banks.

I imagine it wouldn’t hurt to have an understanding of Basel III and the timeline for implementation of the above metrics. FYI the old regulatory metrics were Name Crisis and Going Concern; could be useful to drop these in to casually show you know your stuff.

zxf what do you do right now?

An entry-level middle office role in credit analysis/reporting

The names were only applied in Austrila right?