EastEuro Link Webinar Series

Tackling the challenges of the post crisis environment

Live Stream: CEE Asset & Liability Management in Banks
19th May 2010
London

Video on Demand and Speakers Presentations available now

EastEuro Link's inaugural CEE ALM in Banks Webinar took place on 19th May 2010 at our studio in Central London. Connected remotely from their desktops, delegates were able to stream live discussions, pose questions and participate in lively debates on topical ALM issues of the post crisis environment. For those of you who were not able to participate in the live event, we have an on demand version which can be accessed through our website www.easteurolink.webcastglobal.com

The Studio was buzzing with a constant influx of comments and questions streamed in through the live web server. Viewers were logged in from Banks, IT companies and Consultancies, not just from the CEE region but from all over the world!

Speakers gathered to discuss the most topical issues in today's market and the devastating effects of last year's economic recession. CEE bankers highlighted the problems faced by banks managing Assets and Liabilities. IT companies offered solutions to the problems faced by these industry practitioners. Our Chairman for the day was Kannan Amaresh of Infosys technologies Ltd, his webinar debut proved a success with delegates and speakers alike.

The preliminary session began with a 20 minute industry insight from Fabio Battaglia of Algorithmics. Fabios presentation covered issues concerning the government legislations surrounding the implementation of Basel ll. His basis of argument was that banks need to have proper managing strategies in place for estimating and stress testing funding liquidity. Fabio went on to illustrate how the 'Survival Horizon Model best practice' was a fundamental indicator for assessing banks' resilience against potential risk.

This presentation was followed by an insider analysis of Techniques for Stress Testing and Contingency Funding plans provided by Stanislav Sabol of the Czech bank, CSOB. For Stanislav, what is most important is that banks should clearly define the size of immediately liquefiable assets that would be used in such stress scenarios. His Ultimate argument was that a realistic and executable Contingency Funding Plans would need to be in place for banks to efficiently manage assets and liabilities within a 1year time frame.

Following a short 20 minute break, the next session provided an alternative 'Transparency Model' for managing liquidity risk post recession. Kannan Amaresh of Infosys Technologies Ltd advised of how bank contingency plans were practically nonexistent in times of crisis. He stressed the importance for banks to be self sufficient as they become less willing to lend. For him, externally focused liquidity reporting tools would mean that bank stakeholders would be well informed of the risks involved and better able to make informed decisions. This would lead to greater transparency within the whole liquidity reporting [LRR] process. He concluded that the most effective LRR should be modeled with emphasis on integrated stress tests and scenario analysis, rigorous stress testing and scenario analysis and development of an early warning system.

Lastly in the agenda came a very well received presentation provided by Mihaly Orzagh Treasury Directorate of K&H bank, Hungary on the Key Principles of Internal Transfer Pricing Policy. In this informative presentation Mihaly debated why simply changing internal transfer pricing is not a solution to the problem. His somewhat controversial analysis deemed the Basel III proposal to impose a minimum NSFR of 100% as, too conservative. He better proposed that effective pricing of embedded liquidity risk is a competitive edge. For him ITP should be a living/flexible system with a reflective mechanism for Redistribution of the Net Liquidity Transfer Result.

EastEuro Link thanks all sponsors and viewers for participating in the event and hopes to welcome all again at its future webinars.

For more information, please call + 44 (0) 207 275 8020 or visit www.easteurolink.webcastglobal.com