A OneSumX point-of-view paper in collaboration with Chartis
Explore the first paper in our Chartis collaboration series on financial risk management and asset and liability management (ALM). Learn why financial institutions must evolve their funding liquidity strategies to thrive in a climate defined by volatility, regulatory pressure, and rising depositor stress.
The financial climate has changed – your liquidity strategy must change with it
Financial institutions are operating in an environment of ongoing disruption. Volatile interest rates, weakening credit quality, and shifting depositor behavior are testing even the most well-capitalized banks. Traditional liquidity metrics are no longer enough. As market stress becomes the norm and regulatory scrutiny intensifies, the fundamentals of liquidity management must evolve.
Built for stress: Rethinking liquidity management in a new era of risk examines how persistent volatility is reshaping ALM. Developed in collaboration with Chartis, this OneSumX point-of-view paper outlines a new approach to liquidity that is operationally agile, analytically rich, and structurally resilient.
Key insights from the paper
A new era of risk
Aggressive rate changes, tightening credit conditions, and rising consumer stress are reshaping liquidity dynamics across every region. Depositor behavior is less predictable, and asset performance is more fragile. Banks need deeper insight and faster response.
From ratios to real-time response
Recent bank failures revealed a critical truth: meeting regulatory liquidity ratios doesn’t guarantee resilience. What matters is how quickly liquidity can be mobilized and sustained under stress.
Operational liquidity should be a strategic priority
Liquidity management must be integrated across treasury, risk, finance, and business teams. A shared view of real-time data, tools, and decision-making is now essential.
Impact on smaller institutions
Regional banks face growing challenges, including flight-to-safety behavior, digital competition, and limited emergency funding. For these institutions, robust liquidity planning is now a matter of survival.
Regional realities, global lessons
- US: The 2023 banking crisis underscored the importance of contingency execution and deposit-based stability
- Europe: Supervisors are emphasizing buffer usability and intraday liquidity tracking
- Asia: Institutions are strengthening USD funding visibility and reassessing exposure in low-yield portfolios
Liquidity is no longer a risk to be simply monitored. It’s a dynamic resource to be managed. In a world of shifting regulation, digital deposits, and sudden market shocks, funding liquidity risk management must become a connected, data-driven function.
OneSumX from Wolters Kluwer delivers the solutions and insights to help you respond with speed and confidence.
Complete the form to download the full Point of View paper from Chartis and Wolters Kluwer - Built for stress: Rethinking liquidity management in a new era of risk.
