Ambit BancWare Liquidity Risk
With the subprime crisis, banks must monitor liquidity risk more closely and become more transparent to auditors and the public. Banks must consider several critical issues when developing effective liquidity risk management policies including management structures, monitoring net funding requirements, emergency planning, foreign currency, internal controls and public disclosure.
SunGard can help. SunGard’s Ambit BancWare Liquidity Risk helps banks establish processes for the measurement of potential liquidity gaps, constant monitoring of the liquidity situation and the survival horizon, establishment of contingency planning, including triggering events and testing for contingency plans using stress scenarios.
Features
- Provides the facility to simulate the balance sheet into the future
- Accurately simulate the influence of realistic stress scenarios on the balance sheet
- Supports countermeasures such as selling off assets using different strategies (including P&L impacts of haircuts), unsecured borrowing, secured borrowing (repos, including delivery of loans to the ECB), use of standing facilities at a central bank, effects of securities lending, lending strategies and freeze of product distribution
- Includes a set of pre-defined, extensible leading key risk indicators
- Supports IFRS 7 reporting
Benefits
- Cashflow simulation/stress scenarios allows banks to incorporate a wide range of scenarios for liquidity risk assessment
- Ease of building models allows banks to evaluate their efforts to enhance counterbalancing capacity immediately
- Understand the bank’s balance sheet’s weaknesses regarding funding source concentrations
- Advanced reporting capabilities allows weaving of contingency planning into stress scenarios