The Faculty of Finance held the first seminar of the "40th Anniversary: Finance Seminar Series " on the afternoon of October 8, 2020. Mr. Zhang Yao from the Treasury Department of China Guangfa Bank (Macau Branch) was invited as a guest speaker and made a speech themed " Liquidity Management in Banking ". Lin Baoguo, Deputy General Manager of China Guangfa Bank Macau Branch, Zeng Junming, Manager of Macau Branch of China Life Insurance (Overseas) Co., Ltd., Adrian Cheung, Dean of the Faculty of Finance, City University of Macau, Khong Yueng Wah, Associate Dean of the Faculty of Finance, City University of Macau and other guests attended the seminar.

    In the seminar, Mr. Zhang talked about liquidity management in banking in detail based on his own work experience. First, he discussed the different views on "liquidity" to stress the importance of liquidity management in banking. For example, ordinary people’s views on liquidity are consumption, deposits, financial management, etc.; the company’s views are procurement, settlement, loans, etc.; and commercial banks’ views are asset and liability management, position management, cash management, etc. Next, Mr. Zhang explained the relevant regulatory laws and regulations, as well as the daily work and responsibilities of liquidity traders. In addition, a variety of tools for liquidity management that help facilitate transactions were also discussed, such as foreign exchange and derivatives transactions, capital transactions, fixed income, etc. At the same time, he took a recent major liquidity risk event as an example, that is, the US dollar liquidity shock in March, and analyzed it from the perspective of liquidity traders to bring out the views of liquidity traders.

    The students benefited a lot from the seminar as it helped them to have a better understanding of liquidity management in banking, liquidity crisis strategies and operational issues.