Governance, Risk & Compliance

Governance, Risk & Compliance

June 17, 2011

Polaris Software Unveils Intellect Liquidity Risk Management

Polaris Software, a global financial technology company, has launched the Intellect (News - Alert) Liquidity Risk Management (LRM).

A software suite, LRM enables banks and financial institutions to comply with BASEL III recommendations on banking supervision to enhance the banking regulatory framework, addressing both solvency and liquidity issues.

Banks and financial institutions can benefit as LRM enables banks to improve their ability to monitor both structural and intraday internal liquidity. Banks can also do a stress test to calculate their capital adequacy and a rigorous reporting process to review any implications of liquidity mismatch.

“Basel III guidelines have demanded that banks operate with a higher level of transparency and governance to be able to withstand any type of global economic stress,” said Bikash Mathur, European CEO, Polaris Software, in a statement.

“Regulators are naturally keen to ensure that banks increase their capital bases to protect consumers whilst providing adequate risk protection for themselves. LRM has been developed to specifically address this requirement and provide a framework that offers a far more stringent system to monitor and manage liquidity in real time,” Mathur added.

The important recommendations of Basel III standards include real-time intraday liquidity risk at enterprise level; structural liquidity risk management for the long term funding; and precision in pricing of asset and liability products.

Leveraging Polarisft LRM solutions, banks can achieve intraday liquidity management; minimize intraday liquidity exposure; reduce the cost of borrowing; optimize investment; structural liquidity management.

The new solution assists banks to enable asset-liability classification/definition; ratios for short term and long term funds usage; scenario/stress testing and its impact on liquidity and determine the capital coverage; price modeling, assisting in arriving at the right pricing to achieve borrowing and lending targets.

Recently, Polaris Software signed a definitive agreement to acquire 85.3 percent stake in IdentTrusi, a U.S.-based provider of identity solutions for financial institutions and government agencies.

Rajani Baburajan is a contributing editor for TMCnet. To read more of Rajani's articles, please visit her columnist page.

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