LPFMI - (Custodian) Bank Supervision

LPFMI - (Custodian) Bank Supervision

April 2021 - June 2021

LPFMI - (Custodian) Bank Supervision

Webinar Series

Description

WEBINAR INFORMATION
Custodians play a key but discrete role in the global financial market infrastructure. They are licensed as “credit institutions”, a legal requirement for European deposit-taking institutions, and therefore they face the same prudential requirements as “traditional” banks. However, their business model and risk profile are different from those of traditional banks since the core of their activity does not encompass balance sheet transformation and the associated risks.

Charles Coste, Céline Tcheng (both YSI) and Ingmar Vansieleghem (all ECB) recently published a paper with the ECB Occasional Paper Series on the supervision of custodian banks. It can be puplicly accessed here.

In order to present their findings, Charles is going to come out in two webinars to

1) Introduce us to principles of bank supervision
2) Deep-dive on custodian bank supervision

LPFMI INFORMATION
As some of you know, LPFMI is concerning itself around liquidity questions in financial market infrastructure (FMI) and is therefore open to all questions regarding
i. Liquidity problems at FMIs - this is the core of this project
ii. Liquidity problems in the financial system - this could be the next LP focus
iii. FMI problems in general - this includes innovation such as blockchain / DLT

Should you want to learn more about LPFMI, check out the links below for our initiation presentation from Jun. 2019. There were also Q&A webinars on the presentation, you can check out as well or reach out to any of us at LPFMI. Come join us!

FURTHER LINKS
The liquidity project - Financial Market Infrastructure (LPFMI) introduction presentation Jun. 2019
https://drive.google.com/file/d/1sZDn62qfGq8TLvkSP9hKKJEISjkhLMjx/view
Liquidity Project Financial Market Infrastructure Q&A
Video: https://storage.googleapis.com/ysi-recordings/5d3760970a199f1460d78b4c/video.mp4
Audio: https://storage.googleapis.com/ysi-recordings/5d3760970a199f1460d78b4c/audio.m4a

UPCOMING EVENTS

There are no upcoming events in this project.

PAST EVENTS

Online

27 May 2021

Webinar

LPFMI - (Custodian) Bank Supervision 1/2 - Introduction to bank supervision

WEBINAR INFORMATIONCustodians play a key but discrete role in the global financial market infrastructure. They are licensed as “credit institutions”, a legal requirement for European deposit-taking institutions, and therefore they face the same prudential requirements as “traditional” banks. However, their business model and risk profile are different from those of traditional banks since the core of their activity does not encompass balance sheet transformation and the associated risks. Charles Coste, Céline Tcheng (both YSI) and Ingmar Vansieleghem (all ECB) recently published a paper with the ECB Occasional Paper Series on the supervision of custodian banks. It can be puplicly accessed here. In order to present their findings, Charles is going to introduce to us during this webinar the principles of bank supervision. In the second webinar planed for Thu. 3. Jun. 2021, he will deep-dive into custodian bank supervision. LPFMI INFORMATIONAs some of you know, LPFMI is concerning itself around liquidity questions in financial market infrastructure (FMI) and is therefore open to all questions regardingi. Liquidity problems at FMIs - this is the core of this projectii. Liquidity problems in the financial system - this could be the next LP focusiii. FMI problems in general - this includes innovation such as blockchain / DLT Should you want to learn more about LPFMI, check out the links below for our initiation presentation from Jun. 2019. There were also Q&A webinars on the presentation, you can check out as well or reach out to any of us at LPFMI. Come join us! FURTHER LINKSThe liquidity project - Financial Market Infrastructure (LPFMI) introduction presentation Jun. 2019https://drive.google.com/file/d/1sZDn62qfGq8TLvkSP9hKKJEISjkhLMjx/viewLiquidity Project Financial Market Infrastructure Q&AVideo: https://storage.googleapis.com/ysi-recordings/5d3760970a199f1460d78b4c/video.mp4Audio: https://storage.googleapis.com/ysi-recordings/5d3760970a199f1460d78b4c/audio.m4a

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Online

3 Jun 2021

Webinar

LPFMI - (Custodian) Bank Supervision 2/2 - Custodian supervision deep-dive

WEBINAR INFORMATIONCustodians play a key but discrete role in the global financial market infrastructure. They are licensed as “credit institutions”, a legal requirement for European deposit-taking institutions, and therefore they face the same prudential requirements as “traditional” banks. However, their business model and risk profile are different from those of traditional banks since the core of their activity does not encompass balance sheet transformation and the associated risks. Charles Coste, Céline Tcheng (both YSI) and Ingmar Vansieleghem (all ECB) recently published a paper with the ECB Occasional Paper Series on the supervision of custodian banks. It can be puplicly accessed here. In this webinar, Charles will deep dive on the issue of custodian supervision and how these banks differ from traditional banks with regard to:(i) balance sheet structure,(ii) income generation, and(iii) risks to capital & risks to liquidity faced; and how these differences should be incorporated in custodians’ internal risk measures and supervisory authorities’ risk assessment methodologies to prevent severe capital and liquidity misallocation by the credit institutions and inadequate decisions from supervisory authorities. Please note that Charles introduces principles to bank supervision on Thu. 27. May 2021 in order to prepare for this webinar. This webinar will built on these. We recommend to preview the recordings, if you are new to this topic. LPFMI INFORMATIONAs some of you know, LPFMI is concerning itself around liquidity questions in financial market infrastructure (FMI) and is therefore open to all questions regardingi. Liquidity problems at FMIs - this is the core of this projectii. Liquidity problems in the financial system - this could be the next LP focusiii. FMI problems in general - this includes innovation such as blockchain / DLT Should you want to learn more about LPFMI, check out the links below for our initiation presentation from Jun. 2019. There were also Q&A webinars on the presentation, you can check out as well or reach out to any of us at LPFMI. Come join us! FURTHER LINKSThe liquidity project - Financial Market Infrastructure (LPFMI) introduction presentation Jun. 2019https://drive.google.com/file/d/1sZDn62qfGq8TLvkSP9hKKJEISjkhLMjx/viewLiquidity Project Financial Market Infrastructure Q&AVideo: https://storage.googleapis.com/ysi-recordings/5d3760970a199f1460d78b4c/video.mp4Audio: https://storage.googleapis.com/ysi-recordings/5d3760970a199f1460d78b4c/audio.m4a

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Working groups
  • Financial Stability
  • Finance, Law, and Economics
Project Organizers
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Gerhardt "Kiko" Kalterherberg

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Maria Cecilia del Barrio Arleo

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Ádám Kerényi

For questions, the Project Organizers.