Liquidity Management Working Group

Background and mission

Efficient and effective liquidity management arrangements and processes are important for the business of banks and corporates alike. Liquidity managers are currently facing many challenges, including the migration of liquidity management practices into the digital area and to real-time processes.

To support liquidity management professionals in better understanding and dealing with ongoing market developments as well as related technical, operational, regulatory and organisational questions, the Euro Banking Association (EBA) launched a Liquidity Management Working Group (LMWG), which began its work in the third quarter of 2017.

The objective of the EBA Liquidity Management WG is to deliver thought leadership on liquidity management practices with a clear focus on corporates as end-customers. The working group will not address commercial or business aspects. The deliverables will be primarily informative and include an analysis of trends and envisaged future developments.

For more information on the Liquidity Management Working Group, please click here: Terms of Reference

Current activities

In its first paper, published in June 2018, the working group analysed the effect of Basel III on two key elements of corporate liquidity management – the investment of corporate cash and the future availability of notional cash pooling. Since then, the working group has been examining how banks could harness technology to retain existing and build new relationships with their target corporate client groups in the liquidity management ecosystem. The new paper is currently being prepared for publication in April 2019.

The latest project of the LMWG investigated the impact of intraday liquidity and instant payments on the corporate liquidity management ecosystem and examined use cases for both banks and corporates:

"How banks can harness technology for the benefit of the corporate liquidity management ecosystem"