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Audio August 6, 2026

Why Liquidity Risk Models Are Struggling to Keep Up With Modern Banking

Funmilayo Johnson, Director, American Express Treasury, American Express

Liquidity risk is no longer just about balance sheets and regulatory ratios. In this episode, Funmilayo Johnson explains why customer behavior, payment speed, digital innovation, and intraday liquidity monitoring are redefining risk management. From the lessons of SVB to evolving stress testing practices and regulatory expectations, she examines how firms can improve visibility, strengthen resilience, and better anticipate liquidity shocks in an increasingly real-time financial system.

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Liquidity risk management is being reshaped by a financial system that moves at digital speed. Reflecting on lessons from Silicon Valley Bank, Funmilayo Johnson explains that traditional assumptions around deposit stability are no longer enough. Financial institutions need a deeper understanding of customer behaviour, industry concentrations, and transaction patterns as funds can move faster than ever and market sentiment can change almost instantly.

 

Johnson also highlights the growing importance of intraday liquidity monitoring as a critical tool for identifying emerging risks before they become funding events. While historical data remains the foundation of liquidity risk management, firms increasingly need granular, real-time insights to detect anomalies, improve stress testing, and strengthen decision-making. As payment speeds accelerate and regulatory expectations evolve, institutions that can combine behavioural analytics with better liquidity visibility will be better positioned to navigate future shocks.

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