This is acknowledged by the Basel Committee of Banking Supervision (BCBS) publication ‘Principles for Sound Liquidity Risk Management and Supervision’ and reinforced via the impending regulation directed through the Bank of International Settlements (BIS). The ‘Monitoring tools for intraday liquidity management’ paper, defines the tools that will promote sound liquidity management practices that regulators will be implementing on 1st January 2015 for all international banks.

SmartStream has reacted to the pressures of intraday reporting through the creation of its Intraday Liquidity Management module within the TLM Cash & Liquidity Management solution. Cash is forecasted, reconciled and consolidated to deliver a single view across all currencies and accounts in real-time, whilst monitoring and reporting on an intraday basis. The module enables banks to:

  • Meet the seven reporting requirements set out by the BCBS
  • Address the six operational elements under ‘Principles for Sound Liquidity Risk Management and Supervision’
  • Capture ‘Point in Time’ liquidity positions down to the second
  • Measure KPI’s on a daily, monthly and yearly basis
  • Obtain real-time visibility and alerts against credit lines or exposure limits to control settlement, correspondent, market and counterparty risk
  • Control payment flows as necessary
  • Automatically realign liquidity positions to avoid breaches and mitigate risks
  • Develop and refine limits to allow more effective management and control of intraday liquidity and reduction of liquidity buffers
  • Integrate global intraday liquidity management operations within the wider cash and liquidity management framework
  • Forecast and confirm positions using TLM matching technology