Polaris Software announced the launch of Intellect Liquidity Risk Management (LRM) solution which enables the banks and financial institutions worldwide to comply with BASEL III. It is state of the art liquidity risk management solution meant to improve the bank’s ability to monitor internal liquidity – both structural and intraday – along with stress test to calculate the bank’s capital adequacy and rigorous reporting process to review the implications of the liquidity mismatch.
The solution is being showcased to the Banking industry leaders at the Middle East Financial Technology Exhibition and Conference (MEFTEC 2011). The focus on effective management of liquidity is ever increasing in the post meltdown world. The increased incidence of failures in the financial services marketplace has further intensified this trend. BASEL III is part of the continuous effort made by the Basel Committee on banking supervision to enhance the banking regulatory framework.
[advt]At a high level, the regulations fall in two groups viz. Solvency and Liquidity. Globally, banks have progressed adequately on the ‘solvency’ part of regulation while working on Basel I, II and 2.5 regulations. However, financial institutions will need to make fresh technology investments to be able to monitor and manage real time internal liquidity.
The new solution helps the banks to achieve the following business rationale with regard to BASEL III norms:
- Intraday Liquidity Management
- Minimize Intraday Liquidity Exposure
- Reduce the Cost of Borrowing
- Optimize Investment
- Structural Liquidity Management
- Enables Asset -Liability classification/definition
- Ratios for Short term and long term funds usage
- Scenarios/Stress Testing and its impact on liquidity and determine the capital coverage
- Helps in arriving at the right pricing to achieve borrowing and lending targets- core to Structural
- Liquidity Management
Speaking on the occasion, Arun Jain, Chairman & CEO, Polaris Software, said,
“In light of the Basel III regulations, the launch of IntellectTM LRM is just in time. The solution is created from the best practices in global risk and treasury management assimilated over years of working with top tier banks in 80 countries across the globe. Intellect LRM is built on a superior architecture comprising IntellectTM ALM, functioning at Saudi’s top rated bank and Intellect Treasury system, live in a leading Treasury in Bahrain. It will establish stronger liquidity standards; improve resolution frameworks andenable banks comply with Basel III. ”