AxiomSL reporting platform meets Basel III liquidity requirements

NEW YORK, USA: Axiom Software Laboratories Inc. (AxiomSL), a global provider of regulatory reporting and risk management solutions, announced today its data-integrated reporting platform enables banks to meet Basel III liquidity requirements.

In the post-crises world, liquidity risk management has rightfully attained the centre-stage of every financial institution. Banks are increasingly looking to deploy more sophisticated methodology for managing their liquidity which goes beyond the traditional asset liability management (ALM) metrics.

Furthermore, the demands of meeting the compliance requirements for liquidity risk under Basel III and its local variants, Capital Requirements Directive IV (CRD IV), has brought in a practical urgency into the whole process.

Banks face unique challenges when addressing liquidity risk requirements:

* Ensuring that short term liquidity ratios are in sync with longer term stable funding and lending;

* Addressing entity-level liquidity needs together with the consolidated group level;

* Meeting complex and evolving multi-jurisdiction reporting requirements (Japan Financial Service Agency (JFS), UK Prudential Regulation Authority (PRA), Australia Australian Prudential Regulation Authority (APRA), etc.);

* Consolidating data originating from different formats, frequencies, scopes, treatments, processes and locations into a group level for calculation and stress testing;

* Having the flexibility to monitor liquidity through various dimensions;

* Generating liquidity reports with greater frequency and timeliness.

With financial institutions gearing toward the new approach of liquidity risk measurement, the limitations of quick-fix and siloed approaches are becoming even more stark. AxiomSL's liquidity solution enables banks to meet all the above challenges. Its data-driven, multi-jurisdiction platform provides highly configurable and customizable capabilities, such as rule-based calculations and aggregations.

Additionally, the platform includes comprehensive drill-down functionality, allowing for a full audit-trail to the data sources. It has the flexible, built in logic which addresses the whole array of liquidity calculations, including Liquidity Coverage Ratio (LCR), Net Stable Funding Ratio (NSFR) and monitoring tools. It caters for user-defined stress testing under multiple scenarios.