|The increasingly complex matrix of compliance regimes present new challenges for banks and financial institutions. From January 2015 the Basel III framework will be further augmented by intra-day liquidity regulatory obligations, forcing Banks to increase liquidity buffers with mandatory reporting on daily patterns of liquidity usage.
Through improving liquidity management processes, such as forecasting, reconciliation and collateral management, Liquidity Insight provides Banks with compliance assurance and measurable competitive advantages.
|Facing substantial financial penalties, reputational damage and loss of business for non-compliance, risk mitigation in the management of intra-day liquidity has resulted in the over-collateralisation of liquidity buffers, with a dramatic impact on costs.
Utilising Liquidity Insight clients can better understand the real-world complexities of liquidity management, enabling the recalibration of buffer requirements - often with significant reductions in collateralisation levels. For every $1bn reduction in the daily liquidity buffer, clients can expect to save around $10m per annum.
|The simulation and modelling tools enable participants to better understand the impact their own customers have on daily payment flows, revealing the often hidden benefits and costs associated with differing customer profiles. The resulting opportunity weighting across a bank's entire customer portfolio provides valuable, and often surprising, business development insights.
Regulatory reporting obligations are met. Liquidity buffers are reduced. Capital and resources are more profitably deployed.