Press release - "Liquidity Modelling solution takes the pressure off C. Hoare & Co."
Find out how our ALFI® solution is helping the UK's leading independent private bank, C. Hoare & Co., meet the FSA’s mandate for managing liquidity risk
A purpose-built liquidity modelling solution
Find out about Whistlebrook's Analytics for Financial Institutions (ALFI®) automated solution for liquidity modelling
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Does your liquidity system meet FSA requirements?
The recent financial crisis, exposed weakness in liquidity risk controls across financial sectors and confirmed a need to establish more rigorous standards.
Under the FSA’s mandate, firms are expected to establish and maintain enhanced systems and controls for managing liquidity risk. However, liquidity modelling and reporting systems implemented by financial firms may yet fall short of FSA requirements
In meeting the FSA’s mandate to establish and maintain enhanced systems and controls for the management of liquidity risk, many firms will have had to implement a ‘best guess’ solution, due to complex requirements and a tight timeline.
Depending on the type of financial institution, the FSA scheduled a phased switch-on for liquidity reporting beginning on 1 June 2010. FSA guidance comprehensively outlines compliance criteria but is not wholly prescriptive on methodology, for example regarding exactly how to model and report stress scenarios. This puts enormous pressure on firms, at a senior level, to ensure that their systems will stand up to FSA scrutiny.
