FSA Regulation
Revolutionary changes have significantly altered liquidity risk measurement and management. The BIS Committee on Banking Supervision and the Council of European Bank Supervisors have published detailed new guidance. Nevertheless, the UK FSA [FSA] has been the front runner is defining standard to strengthen liquidity. Effectively, the FSA has issued CP08/22 and CP08/24 which address guidance for best practices, reporting standards and stress testing for liquidity risk management for all BIPru firms.
Click to view our FSA Deadline Chart, which provides a consolidated view of all the pertinent dates.
SunGard can help you fully comply with the FSA requirements. Best practices have been refined within our solution offering to provide the key components of a sound liquidity framework:
- Static and dynamic cashflows
- Dynamic stress testing across firm-wide, market-wide and combined scenarios
- KRIs to determine vulnerabilities, limits and triggers
- Funding diversification and maturity concentration analysis
- Internal and external countermeasures to balance in-/out-flows and regulatory reporting needs for data, buffer and regulatory returns
Our experts brief on the latest regulatory requirements, best practice philosophies and advice on how best to manage the ongoing liquidity challenges to the best of banks’ abilities.