November 20, 2013

Axiom Software Laboratories Inc., has released a reporting and monitoring tool that assists in complying with Basel III liquidity requirements.

The built in logic focuses on liquidity calculations such as the liquidity coverage ratio (LCR), a provision from Basel II, approved by the Federal Reserve Board of Governors in the U.S. in Oct. According to “Basel II: The Liquidity Coverage Ratio and liquidity risk monitoring tools,” released by the Basel Committee on Banking Supervision, the objective of LCR is ensure banks have highly liquid stocks for a 30 calendar day liquidity stress scenario.

The solution also has the capabilities for user-defined stress testing. The platform also provides unified framework for liquidity risk requirements, data loading, movement generation, classifications and metrics calculations and reporting, according to Alex Tsigutkin, CEO at AxiomSL in a statement.

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“With the cost of liquidity steadily increasing, it is critical that financial institutions create an environment where they have flexibility to measure liquidity while setting up a solid foundation to address future regulatory changes,” comments Tsigutkin.

“Institutions are forced to adapt to new environments where functional richness has to combine with technology robustness for a quicker and more efficient decision-making and regulatory submission.”

Additionally, the solution integrates to multiple systems data models without needing to transform data into different formats. The tool can also be used in multiple locations for requirements enforced by agencies such as the Japan Financial Service Agency and UK Prudential Regulation Authority.

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Zarna Patel is a staff writer for InformationWeek's Financial Services brands, which include Bank Systems & Technology, Insurance & Technology and Wall Street & Technology. She received ...