NORD/LB Luxembourg S.A.

Liquidity Risk Management with NORD/LB Luxembourg S.A.– One of the Country's Largest Banks

Why NORD/LB Luxembourg S.A. Chose FlexFinance Analytix to Fulfil its Liquidity Risk Management Needs

Initial Situation

Norddeutsche Landesbank Luxembourg S.A. (NORD/LB) is responsible for managing liquidity risk for its three subsidiaries (Norddeutsche Landesbank Luxembourg S.A., SKANDIFINANZ BANK AG and NORD/LB COVERED FINANCE BANK S.A.) as well as for the sub-group, the so-called NORD/LB Luxembourg Group. Each day, the NORD/LB Luxembourg Group is required to report its aggregated results (which comprise the results of its subsidiaries) to its parent company (Norddeutsche Landesbank Girozentrale). To create these reports and to continue optimising all data extracts and processes, NORD/LB once again decided on a FERNBACH solution to implement its requirements:FlexFinance Analytix Liquidity Reporting.

The NORD/LB Challenge

The new liquidity management solution was to be integrated into the system architecture, which comprises a number of front and backoffice systems.

All processing had to run in sync with the endof- day results from the delivery systems. The constant development of the scenario requirements, the reporting package and the group interface also posed additional challenges.

The explicit objective of the project was to reduce not only the operational expenses to which the Risk Management Department in particular was subject but also the operational risk associated with the existing system architecture.

The Solution Package for NORD/LB

The NORD/LB requirements were completely covered by FlexFinance Analytix Liquidity Reporting.

The NORD/LB Requirements

• Multi-company capability
• Integration of the solution into the bank’s existing system architecture
• (Active) Data extraction from different databases, tables, Excel workbooks
• Extract, transform and load (ETL) functionalities
• Data processing, e.g. to create the various scenarios
• Modelling of a liquidity reporting data mart
• Reports in different formats (HTML, PDF, MS Excel) and using different types of access (online access to reports for internal reporting purposes, batch access to group interface)
• Drill-down to individual deals
• Automatic daily run, synchronised with the jobs in the delivery systems
• Stress testing

FERNBACH: The Right Choice

• With ETL functionalities, data can be loaded from any number of sources in any format from any available databases or files. Every company’s deals are actively extracted from various data sources and then mapped against the Liquidity Object Model in Analytix. They are then saved in the data mart that was designed in FlexFinance Analytix specifically for liquidity reporting.
• The scenarios are also defined and generated in FlexFinance Analytix using the portfolios imported into this data mart.
• All reports for internal, external and group-level reporting are created by the FlexFinance Analytix reporting component using the prepared results data.
• The data are updated daily and managed in an archive. Data granularity is flexible and can be adapted to each bank's specific situation and supports drill-down to each and every individual deal.
• Extensive business intelligence options are available for reporting purposes.
• The FlexFinance Analytix processes can be controlled within the solution and integrated into existing job control systems without any difficulty.

This solution package fulfils all requirements, whether in terms of portfolios, scenarios, liquidity analyses or corporate consolidation at the bank management level and including operating costs and reliability.

Years of Valuable Cooperation

Thanks to years of successful collaboration with FERNBACH, NORD/LB Luxembourg S.A. decided to optimise its liquidity reporting with the FlexFinance Analytix Liquidity Reporting solution. And it wasn’t the first time. The bank already uses FlexFinance solutions from FERNBACH to address issues including Accounting, Basel II or Controlling.

Benefits for NORD/LB