Lack of adequate liquidity was the main reason which brought about the demise of some of the biggest banks of their times in 2008-09. In the light of the events of 2008-09 regulators worldwide have made the reporting of liquidity number a very detailed and stringent process.
Under Basel III liquidity risk has been addressed in a detailed manner with the introduction of LCR & NSFR reporting requirements. Basel III also addresses the issue of adequate liquidity during times of distress and the quality of the liquid assets at hand.
Tech Mahindra can helps banks confirm with the guidelines presented in BCBS 238 along with requirements of individual financial regulators in different geos like FED, PRA, FINRA, MAS, HKMA etc.
Service offerings under Liquidity risk management
- Scenario Analysis
- Sensitivity Analysis
- Bank Run off model development
- Exposure management
- LCR & NSFR calculation & reporting
- Risk Dashboard development
- Review of asset quality
- Report automation
- Data Aggregation
- Real time view of asset holding , exposure and liability
- Liquidity framework implementation and review