Managing and monitoring liquidity in real-time to meet regulatory requirements and for enhanced treasury analytics and operations

In light of the recent pandemic, Treasuries across Europe have been faced with enormous challenges.

To add to this, the ECB and local regulators are forcing banks to gain even more control over their intraday liquidity management, ensuring they have the right tools, and access to the right data, to improve stress testing capabilities and meet reporting BCBS 248 requirements.

Real-time liquidity management is gaining more and more momentum in the banking world as firms realise the benefits that having instant, real-time insight can bring. In addition to optimising cash and liquidity, deploying a real-time treasury can reduce liquidity buffers (and therefore, reduce liquidity costs), provide more effective forecasting, allow for intelligent stress testing and support a flexible reporting framework.

Learning Objectives:

• Understanding the intraday limits set by the ECB and the BCBS 248 reporting requirements: Connect the need to both report intraday liquidity positions to regulators and manage those positions in real time;
• Hold the right-sized intraday reserve to cover large peaks of intraday usage: Use insights to reduce peak intraday usage, which then reduces the costly intraday liquidity buffer requirement;
• Sharpen intraday liquidity management, applying enhanced governance on intraday movements, intraday analytics and stress testing framework;
• Implement automated processes to gain insight into both local currency and Nostro accounts and transactions enabling efficient end of day funding processes and mitigation of risk.