Liquidity Shocks and Liquidity Risk II

Treasurer of Westpac, Mr Curt Zuber

Watch the highlights of Mr. Curt Zuber's speech.

The Institute of Global Finance organised a major business forum on the Global Systemic Risk, Liquidity and Global Financial Stability in Sydney with the participation of the Nobel Laureate Professor Robert Engle from NYU, Professor Deborah Lucas from MIT, Assistant Governor of the Reserve Bank of Australia, Dr Guy Debelle and the Treasurer of Westpac Mr Curt Zuber.

As part of a business forum, Mr Curt Zuber  presented his latest view of issues related to liquidity risk and liquidity shocks.

He has reviewed the lessons learnt during the GFC with respect to liquidity risk and liquidity shocks and how banks have learnt to manage their portfolio in the midst of the GFC and then challenges of facing increases in the cost of wholesale funding, associated with the European sovereign debt crisis.

He highlighted the recent issues with liquidity risk and liquidity shocks and provided an industry perspective on this important issue that could contribute to global and regional bank stability.

Effective financial management of banks in the midst of liquidity risk in recent times should not be underestimated and the lessons that banks have learnt as they face a new phase of strong economic growth could possibly contribute to a more resilient global banking system.