MORS Software 2020 Liquidity Risk Management Survey Report published

MORS Software today published the results of its 10th Annual Liquidity Risk Management Survey. The report includes a 10-year trend summary drawn from the last ten surveys.

This year’s survey was carried out during summer 2020, with 63 banking professionals participating from 24 countries across the UK, Continental Europe, Asia, the Middle East and America.

Overall, the 2020 Liquidity Risk Management Survey confirms what we already concluded in our 2019 report, that the development of many capabilities within liquidity risk management have come to a halt. Some positive development has taken place in the capability to measure interaction between different risk surfaces. This is evidence of the general trend of more integrated and holistic risk management.

Given the COVID-19 crisis and the subsequent need to quickly create new liquidity risk scenarios, we included this year a new question to gauge how easy it is for banks to create new scenarios. The level of agility required to create new scenarios, as well as the capability to perform the required reporting, appears to be the most time-consuming process for banks. This suggests that the usability and flexibility of the solutions operated by banks still have room for improvement.

Over the years, regulation has driven liquidity risk management to be part of a more integrated approach together with the Treasury and Balance Sheet Management functions in banks. “In 2021 we will continue with our research with an integrated ALM survey,  in accordance with our vision. The new survey will monitor the developments of both interest rate and liquidity risk management within one survey.” said Mika Mustakallio, MORS Software CEO.