Liquidity Coverage Ratio Solution: Monitoring And Reporting In A Comprehensive Liquidity Ecosystem

AxiomSL’s comprehensive liquidity ecosystem puts all liquidity data in one place. Financial institutions are empowered to manage their liquidity coverage ratio (LCR), submit accurate LCR and related regulatory reports, and derive business insight from the solution’s transparency and comprehensive analytic capabilities.

Addressing Liquidity Risk Management And Regulatory Compliance

Monitoring LCR, often on a daily basis, is a critical component of a financial institution’s liquidity risk management, regulatory compliance, and stress-testing processes, particularly in times of volatility and unpredictable liquidity scenarios.

Effective Data Management

Calculating LCR accurately and on a timely basis requires large volumes of positional and cashflow forecast data, which must be managed for daily monitoring and monthly/quarterly regulatory liquidity reporting cycles.

Meeting Regulatory Requirements

Greater scrutiny from regulators is making compliance a significant and complex undertaking – forcing firms to grapple with onboarding new regulations and proving that results are attestable when audited.

Learn more about AxiomSL’s Liquidity Coverage Ratio Solution and Basel Risk Ecosystem

Liquidity Coverage Ratio Solution And Liquidity Risk Management Ecosystem

AxiomSL’s Liquidity Risk Management Ecosystem on ControllerView encompasses a jurisdiction-specific NSFR reporting solution

Fully-Integrated | Transparent | Technology-Driven

Provides insight into variance and trend analysis via dashboards

Delivers complete drilldown and clear audit trail to source positional and reference data

Performs categorization of high-quality liquid assets (HQLA)

Recognizes and nets cash outflows/inflows according to international/regional derivatives rules

Handles large data volumes without compromising accuracy

AxiomSL’s NSFR Reporting Solution on ControllerView enables complex calculation, monitoring, and reporting

Data-Driven | Incorporates New FRB Reporting Requirements

Strongly positions firms to do liquidity stress testing (LST) and daily/monthly reporting

Autogenerates the Appendix VI – LCR bridge

Autogenerates the Appendix VIII – NSFR bridge (net stable funding ratio)

Provides automatic extensions including the FR Y-15 bridge

Delivers the LCR and NSFR public disclosure quantitative template

AxiomSL’s US NSFR Reporting Solution enables banks to meet compliance deadlines and prepare for FR 2052a modification

LCR and liquidity monitoring views compliant with regional regulatory definitions

Presents liquidity metrics over customizable time periods

Enables input of internal LCR limit, as illustrated by the dotted line in the Liquidity Coverage Ratio chart

Monitors HQLA composition evolution over time as shown in the HQLA Trend Analysis chart

Solution Features

Transparent Liquidity Processes

Strong data management, monitoring, and governance results in controlled processes from data ingestion to report submission.

Seamlessly ingested, without need for transformation, original data sources are preserved regardless of where they emanate from in the enterprise.

Basel And Enterprise Compliant

An ecosystem of dictionaries, calculations, and reporting are all delivered on the single ControllerView platform.

Extensible data dictionaries are the backbone of a BCBS 239 compliant architecture and accommodate local regulatory and business requirements.

Holistic Liquidity Ecosystem

LCR calculations underpin solutions including NSFR, liquidity monitoring tools (LMT) such as ALMM and LRM, and asset encumbrance.

Robust dashboards draw information from LCR and other liquidity modules, enabling additional levels of analysis, and key trend monitoring.

Jurisdictional Coverage

The ecosystem’s design flexibly incorporates evolving jurisdictional rules, calculations, and liquidity reporting requirements. Global coverage includes:

MAS 649
MA (BS) 1, 1E, 22
APS 210

COREP Liquidity
DRL (Brazil)
FR 2052a

Future Proofing

SaaS-enabled liquidity coverage ratio solution and cloud-enabled ecosystem provides a suite of platform native risk modules.

AxiomSL’s deep industry knowledge and flexible technology enable clients to respond nimbly to change and pave the way for firms to futureproof their overall liquidity risk management.

Modular Design

By calculating averages and producing the quantitative disclosure template, the LCR solution enables compliance with Basel and other frameworks.

The logic module delivers HQLA, cash outflows/inflows (pre and post haircuts) along with LCR rule categories and regulatory-required value.

Key Benefits

Positions financial institutions to manage LCR and the changing liquidity management landscape

Delivers traceability to methods, parameters, and source data in a secure single platform environment

Leverages data for multiple risk and reporting requirements and downstream analytics through liquidity data sourcing

Improves operating efficiencies, including by reusing data for multiple business and regulatory requirements

Ensures fast business processes utilizing big-data technologies, including Spark

SaaS-enabled LCR solution and cloud-enabled ecosystem insulates firms from regulatory and technology changes

Related Insights

Important Considerations for Liquidity Monitoring
and Liquidity Coverage Ratio Reporting

Do we have access to all the data that we need to calculate LCR promptly and accurately?

Do we have adequate data and process controls as well as transparency of data from source to process to results?

Is our technology infrastructure flexible and scalable enough to support evolving regulatory rules, data requirements, data volumes, and reporting frequencies?

Can different run-offs or roll-overs to all cash and collateral outflows/inflows be applied if LCR regulatory requirements change?

If required, are we able to calculate LCR more frequently in periods of market or economic stress?

Are our LCR results and reports reconcilable to other regulatory and internal reporting domains, including NSFR, credit risk, and statistical reports?

Global Liquidity Monitoring, Risk Management Calculations, and Reporting Solutions

Learn more about the Ecosystem For Basel Liquidity Risk

Learn more about the Ecosystem for U.S. Liquidity Risk

Connect with AxiomSL

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