FR 2052a Complex Institution Liquidity Monitoring Report

Enables FIs to efficiently submit FR 2052a by sourcing liquidity data once and use it for multiple risk and reporting requirements and downstream analytics


Overview


Device Frame
Complex Liquidity Monitoring

Financial Institutions (FIs) in the U.S. need high quality and complete data sets to comply with Federal Reserve (FR) FR 2052a Complex Institution Liquidity Monitoring Report. This report is required either daily or monthly for large Bank Holding Companies, Commercial Banks, and the U.S. entities of Foreign Banking Organizations.

Requirements

FR 2052a requires FIs to:

  • Calculate the necessary liquidity risk data accurately and timely. This poses a significant challenge to all FIs because the FR 2052a report collects data for 16 classification categories on 115 product types, 14 counterparty types, 72 asset classes, and 75 maturity buckets out to five+ years, which are related to the assets, liabilities, funding activities, and contingent liabilities on a consolidated basis and by material reporting entity.

  • Access data from multiple source-systems and map them to the required reporting XML values, which then are aggregated into ten tables, and converted to an XML file that satisfies all XML schema requirements and 17 validation checks.

The above factors are forcing FIs to reevaluate their approach to meeting liquidity-reporting challenges.

Questions to Consider

  • Do we have confidence that our data is complete and accurate so that our liquidity measures are trusted values when senior executives, board directors, and regulators see them?
  • Can we apply new categories or different measures of liquidity when market conditions, bank policies, and regulatory rules change?
  • Do we have adequate internal liquidity measurement monitoring and reporting capabilities?

  • Do we have a platform that accommodates different liquidity compliance rules and reporting requirements across our global jurisdictions?
  • Do we have access to all the data that we need to calculate FR 2052a requirements promptly and accurately?
  • Do we have adequate data and process controls and transparency of data from source to process to results?

Solution

Holistic Liquidity Ecosystem

Part of AxiomSL’s holistic U.S. liquidity ecosystem, the FR 2052a solution running on AxiomSL’s ControllerView® data integrity and control platform empowers FIs to use their trusted liquidity data to deliver FR 2052a to the Federal Reserve and to derive compelling analytic benefits for the firm.

Powerful Modules

The solution incorporates the powerful modules:

  • The Automatic LCR-logic module delivers High Quality Liquid Assets (HQLA), net collateral, and cash-flows along with a report with values according to the LCR rules and categories that give the FI’s regulatory-required LCR value
  • An automatic module bridges to the FRY 15 Schedule G/N Report

  • The LCR Public Disclosure module enables compliance by calculating the averages and producing the quantitative public disclosure template
  • The LST module enables FIs to perform RegYY compliant and other user-defined Liquidity Stress Testing

NSFR Calculations

In addition, AxiomSL’s 2052a solution will form the base source for NSFR calculations when the rule is finalized, saving FIs over 60% of the implementation effort because of the cross-reference matches from FR 2052a to NSFR.


As of April 2019, 23 of approximately 39 BHC/IHC/FBOs are currently using AxiomSL’s 2052a + LCR Solution[/vc_column_text]
Device Frame

AxiomSL’s Liquidity Risk Management Ecosystem

Utilize trusted liquidity data to deliver FR 2052a to the Federal Reserve while deriving analytic benefits for the firm.

AxiomSL’s Liquidity Risk Management Ecosystem

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For more information about AxiomSL’s U.S. Liquidity Solution, download the PDF.

Benefits

With liquidity data, models, and calculations in one place, FIs can efficiently submit FR 2052a

Positions FIs to evolve with the changing liquidity regulatory landscape

Delivers trusted analytics and historical perspective

By sourcing liquidity data once, FIs can use it for multiple risk and reporting requirements and downstream analytics

Provides traceability to methods, parameters, and source data in a controlled, single platform environment

LCR Dashboard Module

Leveraging the LCR dashboard module to observe and interrogate, the FI can dig deep into its LCR trends as illustrated here.

AxiomSL’s Liquidity Risk Management Ecosystem

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