https://www.fintechfutures.com/wp-content/themes/fintech_child/assets/images/logo/fintech-logo.png
  • Home
  • COVID-19
  • News
  • Intelligence
    • Back
    • Analysis
    • Interviews
    • Features
    • White Papers
    • Case Studies
    • Surveys, Reports & Infographics
    • Webinars
    • Podcasts
    • Videos
    • Library
    • Techwire
    • Browse
  • Publications
    • Back
    • Banking Technology Magazine
    • Supplements
    • Daily News at Sibos
    • Subscribe to Magazine
  • Content Hub
    • Back
    • Diversity & Inclusion
    • COVID-19: Industry impact & response
    • Challenger Banks Guide
    • Food For Thought
    • I’m Just Saying
    • Through a Gen Z Lens
    • Vlog: It’s a matter of comms
    • Fintech Agony Uncle
    • Ask The Expert
  • Videos
  • WTF? Podcast
  • Awards
    • Back
    • Banking Technology Awards
    • PayTech Awards
  • Digital Events
  • Advertise
  • Jobs
  • More
    • Back
    • About us
    • Contact us
    • Advertising / Media Kit
    • Banking Technology Magazine Calendar
    • Reports Calendar
    • FinTech Futures Newsletter
    • Events
  • FinTech
  • BankingTech
  • PayTech
  • RegTech
  • WealthTech
  • LendTech
  • InsurTech
  • US Edition
    • Intl. Edition
Banking Technology
  • NEWSLETTER
  • Home
  • COVID-19
  • News
  • Intelligence
    • Back
    • Analysis
    • Interviews
    • Features
    • White Papers
    • Case Studies
    • Surveys, Reports & Infographics
    • Webinars
    • Podcasts
    • Videos
    • Library
    • Techwire
    • Browse
  • Publications
    • Back
    • Banking Technology Magazine
    • Supplements
    • Daily News at Sibos
    • Subscribe to Magazine
  • Content Hub
    • Back
    • Diversity & Inclusion
    • COVID-19: Industry impact & response
    • Challenger Banks Guide
    • Food For Thought
    • I’m Just Saying
    • Through a Gen Z Lens
    • Vlog: It’s a matter of comms
    • Fintech Agony Uncle
    • Ask The Expert
  • Videos
  • WTF? Podcast
  • Awards
    • Back
    • Banking Technology Awards
    • PayTech Awards
  • Digital Events
  • Advertise
  • Jobs
  • More
    • Back
    • About us
    • Contact us
    • Advertising / Media Kit
    • Banking Technology Magazine Calendar
    • Reports Calendar
    • FinTech Futures Newsletter
    • Events
  • US Edition
    • Intl. Edition
  • newsletter
  • FinTech
  • BankingTech
  • PayTech
  • RegTech
  • WealthTech
  • LendTech
  • InsurTech

bankingtech.com

bankingtech.com


Basel has triggered “infrastructure reset”

  • Written by FinTech Futures
  • 19th September 2013

The Basel Committee on Banking Supervision’s April 2013 report, Monitoring tools for intraday liquidity management, has provided banks with the “trigger to reset their current infrastructures”, said Detlef Braun, senior consultant at vendor SmartStream.

Historically, said Braun, cash and liquidity management on nostro accounts and liquidity management on RTGS accounts were treated separately by financial institutions. This was in terms of IT systems, management responsibilities and business lines. “But these areas have come closer together with the advent of the ISO 20022 standard and real-time information exchange,” he said.

Moreover, financial business is now very focused on intraday capabilities for RTGS and there is a need to more closely manage intraday liquidity on the nostro side of the equation.

“The Basel Committee’s report on monitoring tools doesn’t differentiate between RTGS and nostro,” said Braun. “We are seeing new requests for proposals from banks that ask for RTGS and nostro liquidity management functionality in the one system. This makes sense. Banks should have a single view for reporting and also for liquidity management.”

Intraday liquidity management has been a hot topic at this year’s Sibos. Simon Bailey, partner and director of financial services, commercial, at CGI, told Daily News at Sibos that regulatory pressure to have visibility of intraday liquidity – in real time – was now an established fact.

Prior to the financial crisis and the ensuing economic crash, intraday liquidity was not considered to be much of a problem – liquidity was abundant and institutions trusted each other to meet their obligations. But now it is scarce, the ability of an institution to see its liquidity standing – in real time – and also to control liquidity in order to smooth out the peaks and troughs of daily payments obligations, is key to effective liquidity management.

“Visibility of liquidity – the need to ensure you are not about to run into the rocks – is challenging because there are different systems, different sources of liquidity and different time zones and timelines involved,” said Bailey. “A financial institution has to put this all together into one place and make it visible.”

Most banks can do this, said Bailey. However, it is the visibility of the liquidity positions and the ability to demonstrate that to regulators that is difficult. Another dimension is control: “It is no longer enough just to be able to see your liquidity positions. You need to be able to control your positions so that if there is a problem, you can extract yourself from it.”

Intraday liquidity is “undoubtedly more of a challenge than it was in the past”, said Dominic Broom, managing director, head of sales and relationship management treasury services Emea at BNY Mellon. But times have changed, particularly since the financial crisis and regulators, while they have stopped short of insisting banks hold capital against intraday liquidity “it will come”, said Broom.

“The provision of intraday liquidity will incur proper charges and that will need to be offset in terms of higher costs,” he added. “There is an element of a supply chain here. There are a lot of inefficiencies because previously no one was thinking of costs and risks. Institutions realise they were being inefficient in handling their liquidity flows.”

 

Tags: Data & Analytics Basel, BCBS, SmartStream BankingTech, PayTech Worldwide

Leave a comment Cancel reply

-or-

Log in with your FinTech Futures account

Alternatively, post a comment by completing the form below:

Your email address will not be published. Required fields are marked *

Related


  • Routable Logo
    Routable raises $30m in Series B funding to boost B2B payments
    Seattle fintech nabs bumper round from a handful of angel investors.
  • SAP logo
    SAP spins out financial services operations in deal with Dediq
    SAP launches new FSI Unit to deal in financial services, with a 20% stake in it.
  • PayPal to avoid Chinese competition with new cross-border wallet
    US giant aims to create a bridge into China with its new service.
  • Why banks need to embrace the new normal
    The banking industry’s definition of normal hasn’t been normal for a majority of customers for years.
  • Saudi Arabia launches new real-time payments system with IBM and Mastercard
    The kingdom enlisted the help of IBM and Mastercard for the roll-out.
  • MVB Bank snaps up majority stake in Indianapolis fintech Trabian
    The value of the stake remains undisclosed.
  • Video: fintech news pick of the week – Santander, Starling & more
    A top pick of stories from the world of finance and tech in video format, weekly.
  • Welcome Tech raises $35m in Series B funding round
    The money will go towards expanding Welcome Tech’s portfolio of financial services.

Related Content

  • Hospitality payment app Sunday raises record €20m seed round for Europe
  • Hi55 Ventures, NTT DATA, Railsbank and Mastercard team up to reinvent payroll
  • Path Solutions gains first Ethiopian client in Bank of Abyssinia
  • Mastercard acquires digital identity firm Ekata in $850m deal

Dock - virtual roundtables

Dock is free to attend for banks and FIs

Click here to register

Sponsorship opportunities available at Dock

Click here for more info

Magazine

Banking Technology April issue out now

8th April 2021

Banking Technology March issue out now

12th March 2021
view all

Webinars

Webinar: Getting to market faster by outsourcing PCI compliance

23rd March 2021

Webinar: Balancing app innovation and cybersecurity in financial services

5th March 2021

Webinar: How to stop massive mobile banking fraud with app security and risk-based authentication

9th February 2021
view all

Reports & Surveys

FinTech Futures Industry Survey & Report 2021

4th March 2021

Report: The power of data analytics in fintech solutions

25th February 2021

Omdia Universe 2020-21: Temenos recognised as a leader for digital banking platforms

15th December 2020

Report: Digital KYB – a springboard to customer onboarding success

30th November 2020
view all

Content Hubs

Diversity & Inclusion Hub

9th April 2021

Dear Luc: your most pressing fintech problems solved by our Agony Uncle

8th April 2021

Vlog: It’s a matter of comms

30th March 2021

COVID-19: industry impact & response

26th June 2020
view all

Podcast

What the Fintech? | S.2 Episode 8 | Bank branches amid COVID-19

8th April 2021

What the Fintech? | S.2 Episode 7 | Class is in session

19th March 2021

What the Fintech? | S.2 Episode 6 | Open banking on the loose

5th March 2021
view all

Videos

Video: fintech news pick of the week – Santander, Starling & more

22nd April 2021

It’s a matter of comms | Episode 4 | Funding

21st April 2021

Video: Top fintech stories this week – 16 April 2021

16th April 2021

Video: Top fintech stories this week – 9 April 2021

9th April 2021
view all

White Papers

Embedded insurance: a $3tn market opportunity, that could also help close the protection gap

4th January 2021

White paper: The business value of ServiceNow for retail banks

12th December 2020

E-book: Migration to cloud – your guide to delivering an intuitive customer experience

8th December 2020

White paper: Re-wiring financial services operations for a bold future

7th December 2020
view all

Techwire

Cannabis Cash Steps Into Digital Future

21st April 2021

Eagle Bancorp, Inc. Announces Record Net Income for First Quarter 2021 of $43.5 Million or $1.36 per Share

21st April 2021

Home Federal Bancorp, Inc. of Louisiana Declares Quarterly Cash Dividend

21st April 2021

Live Oak Bancshares, Inc. Reports First Quarter 2021 Results

21st April 2021

HSBC Introduces First Multi-Asset Index Powered by AI and Big Data

21st April 2021

One Partners With Onfido for Best-in-Class ID Document Review

21st April 2021

Greene County Bancorp, Inc. Announces Cash Dividend

21st April 2021

Pagaya Appoints Two New C-Suite Leaders, Establishing Company as Top Destination for Innovative Talent

21st April 2021
view all

Twitter

FinTech_Futures

RT @communique_UK: In this week's @FinTech_Futures #itsamatterofcomms vlog, our Founder @Gehanam discusses all things #crowdfunding and how…

22nd April 2021
FinTech_Futures

Penta [@getpenta] co-founder Jessica Holzbach exits fintech after four years fintechfutures.com/2021/04/penta-…

22nd April 2021
FinTech_Futures

Saudi Arabia launches new real-time payments system sarie [@SAMA_GOV] fintechfutures.com/2021/04/saudi-…

22nd April 2021
FinTech_Futures

.@PayPal to avoid Chinese competition with new cross-border wallet fintechfutures.com/2021/04/paypal…

22nd April 2021
FinTech_Futures

.@Square goes on mini hiring spree ahead of new banking products fintechfutures.com/2021/04/square…

22nd April 2021
FinTech_Futures

Danish noebank @lunarbank acquires Swedish lender @lendify fintechfutures.com/2021/04/danish…

22nd April 2021
FinTech_Futures

.@mvbbanking snaps up majority stake in Indianapolis fintech @trabian fintechfutures.com/2021/04/mvb-ba…

22nd April 2021
FinTech_Futures

This week’s #itsamatterofcomms vlog with @Gehanam focuses on all things funding and features @hannahsforbes, founde… twitter.com/i/web/status/1…

21st April 2021

Dock: virtual roundtable experience like no other

18-19 May 2021; FREE TO ATTEND

US Challenger banks: who's who & what's their tech

Free to read

FinTech Futures Industry Survey & Report 2021

A deep-dive into the trends defining 2021 and beyond. FREE DOWNLOAD

Free webinar: Getting to market faster by outsourcing PCI compliance

22 April 2021, register today!

Fintech Futures
  • About us
  • Advertise with us
  • Contact us
  • Fintech jobs
  • Privacy
  • CCPA: “Do Not Sell My Data”
  • Cookies Policy
  • Terms
Copyright © 2021 Informa PLC. Informa PLC is registered in England and Wales with company number 8860726 whose registered and Head office is 5 Howick Place, London, SW1P 1WG.
This website uses cookies, including third party ones, to allow for analysis of how people use our website in order to improve your experience and our services. By continuing to use our website, you agree to the use of such cookies. Click here for more information on our Cookie Policy and Privacy Policy.
X