Post the liquidity crisis, the recent reform sees a shift of focus from end of day funding requirements to detailed scrutiny of intraday liquidity monitoring activity of the banks. With Basel III outlining the Sound Principles of Liquidity Risk Management, Principle 8 is focused on Intraday liquidity Management.
BCBS 248 defines "Intraday Liquidity Monitoring Tools" which are a set of quantitative tools that will enable banking supervisors to monitor banks' IDL risk and their ability to meet payment and settlement obligations on a timely basis under normal and stressed scenarios. These complement the Basel III liquidity ratios-LCR and NSFR.
Intellect Bank Liquidity Management is a specialized Nostro Cash Management solution which helps a Liquidity Manager, to take proactive steps and timely decisions to manage his intra day liquidity effectively. Apart from planning and forecasting the cash positions, the solution also helps to rationalize the nostro accounts, reconcile the balances and handle any cash flow exceptions through defined workflows, thereby minimizing settlement risk.
The solution is powered by ready to deploy "BCBS248 Monitoring Tool" which apart from compliance to the regulatory reporting requirement enables banks in early detection and resolution of intra day shortfalls by providing breakup by payment priority and modes and enables funding decisions by highlighting various intraday liquidity sources on a real time basis.
- Helps to determine the probability of settlement failure and potential loss resulting from incorrect positioning of currency balances
- Early detection and resolution of intraday shortfalls to enable appropriate funding decisions to meet potential shortfall situations
- Mitigates Operational Risk by automating the Control, Reconciliation and Exception Management processes