Oracle Financial Services Liquidity Risk Management

The Oracle corporation presented the new solution of Oracle Financial Services Liquidity Risk Management designed to help financial institutions to provide a full compliance to requirements of Basel III in December, 2011.

Thanks to the new application banks can calculate the minimum threshold value required by "International settlements bank" (Bank of International Settlements, BIS) for indicators of a covering of liquidity (LCR) and net stable financing (NSFR). It will allow banks to provide adequate liquidity at development of the situation on short-term and long-term a stress scenario, says Oracle. At the same time, the new solution allows to observe the principles of the liquidity risk management set to BIS, the Individual Liquidity Adequacy Standards standards of the Financial Services Authority of Great Britain (FSA) and other regulatory requirements influencing identification, assessment and risk control of loss of liquidity in normal and stressful conditions.

Using a new solution banks will be able to reveal and manage threats of emergence of liquidity risks by carrying out the gap-analysis in standard and stressful situations that will allow them to be focused on danger of emergence of imbalances of liquidity, using the strategy of equilibration. Such approach, in turn, gives the chance to the top management of bank to make most justified and exact decisions on the liquidity management for observance of regulatory requirements, claim in Oracle.

"Oracle Financial Services Liquidity Risk Management allows banks to use pro-active approach to observance of new regulatory regulations, including Basel III and Dodd-Frank Act. The application gives them the chance to observe requirements to indicators of a covering of liquidity and net stable financing at simultaneous implementation of internal strategy of risk management" — S. S. Ramakrishnan, the senior vice president and the CEO of the Oracle Financial Services Analytical Applications direction said.