Real-Time Intraday Liquidity Monitoring SolutionAchieve Basel III Deadlines Faster with a Ready-To-Deploy Solution Aligned to BCBS Guidelines
Clari5 Real-time Intraday Liquidity Management Solution
In April 2013 the Basel Committee on Banking Supervision (BCBS) had published a set of new regulations for banks – ‘Monitoring tools for intraday liquidity management’ (BCBS 248) – a set of monitoring tools focusing on intraday liquidity monitoring and reporting mandates, that mandates banks worldwide, to comply with the 7 key intraday liquidity monitoring measures.
The tools are meant to enable regulators and supervisors to have sufficient information to monitor banks’ intraday liquidity risk and their ability to meet payment and settlement obligations on a timely basis under normal and stressed conditions by assembling necessary data.
- The Need for Immediate Action
- Solution Highlights
- A Ready-To-Deploy Solution Aligned to BCBS Guidelines
The BCBS intended banks to start using the monitoring and reporting tools from January 2015, with full implementation by January 2017. Since then, regulators worldwide have begun setting target dates for BCBS 248 compliance and banks have realized that they need to quickly come to terms with BCBS 248.Given the time-sensitivity of the new BCBS regulations, the Central Bank of the UAE made a proactive and decisive move towards ushering better compliance and governance in the region. In 2015 the regulator published qualitative and quantitative liquidity management requirements for UAE banks.
The quantitative liquidity requirements are categorized into:
- UAE specific: the eligible liquid asset ratio (ELAR) and the advances to stable resources ratio (ASRR) and
- Basel III: the liquidity coverage ratio (LCR) and the net stable funding ratio (NSFR)
UAE banks can either apply UAE-specific ratios or (with CB UAE approval) Basel III ratios. Banks wanting to apply Basel III ratios must demonstrate that they have the necessary governance, controls and processes frameworks in place and show they comply with qualitative liquidity standards. As an outcome banks have set goals to identify the key issues (in the setup of their current liquidity management practices), compile quantitative regulatory measures and determine development needs in a timely and structured fashion.
The situation also demands that banks in the UAE have available a robust, high-performance solution that enables real-time monitoring of intraday liquidity both from a risk management, as well as a regulatory compliance perspective.
Clari5 BCBS Intraday Liquidity Monitoring Solution Highlights:
- In-built rules engine to compute intraday liquidity positions that are required to be reported as per BCBS guidelines
- Comprehensive Intraday Liquidity Pattern Detection Engine with an ability to dynamically add new scenarios & rules and deploy them instantly
- Cross-channel integration with multiple core systems to factor in the entire behavior to help identify suspicious patterns resulting in intraday liquidity risk
- Fully integrated Case Management System to monitor all Intraday Liquidity Monitoring Alerts generated by the system and perform additional investigation
- Regulatory Reporting Workbench to electronically generate and file any report required either by the Central Bank or law enforcement agencies
- Management Reporting Workbench to keep the bank’s senior management in the know about accounts displaying fraudulent behaviour
- Scenario Authoring Tool for configuring out-of-the-box scenarios
Clari5 Intraday Liquidity Monitoring Solution is a packaged, ready-to-deploy solution to help banks in the UAE achieve timely compliance with BCBS 248 requirements for Intraday Liquidity Risk Management. Besides mitigating intraday liquidity risk, banks in the UAE can now expect complete compliance with the BCBS 248 regulation in time for the January 2017 deadline. The solution integrates data across all systems in the bank and also provides the flexibility for on-premise or cloud deployment.
Clari5 equips banks with entity and currency level insights into payments and settlements as well as intraday liquidity in real-time. Besides providing a ‘Monitoring Tool Reporting Platform’, the solution also offers real-time/near real-time monitoring of intraday liquidity position, trend analysis and automated alerts for effectively managing intraday liquidity risk.
Clari5 adopts a non-invasive implementation with minimal disruption by re-using existing data flows and connections and shrinks regulatory compliance timelines from months to weeks. Clari5 is suitable for banks of all sizes, from domestic banks operating via select clearing partners to correspondent-service providers with multiple direct clearing partnerships.
Clari5 BCBS Intraday Liquidity Monitoring Solution also provides a strategic roadmap to complete enterprise liquidity monitoring and management through deployment of additional components from the CustomerXPs Real-time Transaction Architecture. Clari5 BCBS Real-time Intraday Liquidity Monitoring Solution is based on the CustomerXPs Real-time Transaction Architecture, which is common to all CustomerXPs solutions.