The European Central Bank (ECB) has updated its approach to regulation and intraday is now firmly part of its liquidity regime. In this article I’ll give the background, explain what’s new and suggest what might happen next. This is important to anyone interested in Eurozone banks, it will inevitably spill over into other European countries and there…
Planixs releases Enterprise Realiti® V7, its latest release of upgraded and new capabilities delivering the most advanced Intraday Cash and Liquidity Management solution in the market. Planixs today announced that it has released Enterprise Realiti® V7 with a new set of real time data analytics capabilities for the banking industry. Covering the intraday cash, collateral…
I’ve written on numerous occasions about how global regulators are gently manipulating banks towards a world of intraday control, through the supervisory process and increasing levels of reporting requirements. The UK PRA has just defined the next stage of the race and this will gradually impact banks all over the world. The PRA has finalised its guidance on intraday supervision, after a lengthy consultation period that started almost two years ago.
Intraday liquidity risk has been a focus for regulators since the financial crashes of 2007/8. The UK PRA, part of the Bank of England, has long been seen the prime mover in this. It was the PRA (and its predecessor, the FSA) that was behind the Basel committee’s BCBS248 monitoring regime and it continues to publicly press an intraday improvement agenda. (The Federal Reserve, although much less public, also has a strong focus on intraday, as banks subjected to liquidity reviews quickly find out).
If you are part of a bank that has any links at all to the UK, then you will be impacted soon enough. If you are outside this sphere of influence then you shouldn’t be complacent, as there is a lot of peer learning in the regulator community, and your local regulator will follow at some point in the future.
I’ve spotted a dozen points of interest from the final guidance and explain them in the rest of this article.
21 Sep 2016 Dawn Loo, Senior Manager, Risk and Compliance, Baringa Partners LLP Pete McIntyre, Financial Services Director, Planixs GRP Limited This series is aimed at helping financial institutions to prepare for the Basel III intraday liquidity standards. In this blog, Baringa and Planixs, a provider of Intraday liquidity software, explain the importance of…
