Our customer is a special bank focusing on transport finance and is one of the leading advisory banks and financing institutions.
One of the tasks with the highest priority in bank management has always been to ensure solvency as well as a favourable and stable funding basis.
The new standards in Basel II or MaRisk lay out rules and organisational requirements for risk management and risk controlling processes which present new challenges for financial institutions.
As a bank based in Germany, our customer has to fulfil the new minimum requirements for risk management.
The overriding objective of providing comprehensive risk analyses means that the bank is required to develop an internal structure for liquidity management.
Furthermore, risk management and risk controlling processes are to be implemented so that significant risks are identified at an early stage, captured completely and presented appropriately. These processes should be incorporated into an integrated system, i.e. into overall bank management.
However, the key challenge for the bank is the appropriate and smooth implementation of the minimum requirements for risk management with regard to liquidity. To meet the new requirements and optimise its risk management decisions, our customer decided to set up an adequate IT system for measuring, controlling and reporting liquidity risks.
- Management of liquidity risk
- Fulfilment of regulatory requirements (MaRisk, second pillar of Basel II) for liquidity management
FERNBACH was the first choice
As a result of discussions in the financial industry, in particular with globally operating universal banks and major investment banks, a market standard for quantifying and limiting liquidity risks was developed. FERNBACH’s Liquidity solution adheres to and extends this standard to maximise the possibilities of ensuring liquidity as well as a favourable and stable funding basis.
This enables the bank to quantify liquidity risks and predict their impact on operations.
FlexFinance® Liquidity allows a consistent view of the overall liquidity situation thus ensuring stable liquidity and risk management and provides data transparency down to the level of individual cash flows.
- Sophisticated methodology
- Modelling of counterbalancing capacity
- Consistent and reproducible results
- Consistent view of the overall liquidity situation
Manual implementation of the MaRisk requirements, if at all possible, is extremely time-consuming and involves huge personnel costs. A reliable software solution is needed for liquidity analyses using various scenarios and the monitoring of individual limit lines.
Early initialisation of a central project enables the bank
- to make realistic forecasts at total bank level or for portfolios and
- to estimate and manage liquidity risks using scenario analyses.