Liquidity risk is a ‘hot topic' in the financial industry.
The entire spectrum of stakeholders - individual institutions, central banks, regulators, politicians - is mobilised to take action, as the recent financial crisis painfully demonstrated gaps in many institutions' ability to manage their liquidity and associated risk, and in regulators' supervision and liquidity frameworks.
In follow-up to the white paper "Managing liquidity risk in a changed and global world" issued in March 2010, SWIFT carried out a study to better understand industry pain points and assess the potential of SWIFT solutions for liquidity risk management.
The research report includes insights from 255 treasury, liquidity and liquidity risk managers at financial institutions obtained via a survey carried out in cooperation with gtnews and 47 face-to-face meetings held by SWIFT with financial institutions, consultants and application vendors.
These are the highlights of what the respondents to the research are looking for:
| 90% want more intra-day reports |
1 |
SWIFT has a rich set of messages to improve intra-day visibility on funds, by providing transactional and account balance information. |
| 87% want traffic pattern and trend analysis, benchmarks and liquidity risk management insights. |
2 |
SWIFT’s Watch tools and traffic analysis can give insights on liquidity movements and counterparty concentration. SWIFT can provide tailored business intelligence to benchmark your operations against peers. |
| 68% want a central, bank-wide view on global liquidity position. |
3 |
SWIFT’s FINInform service can provide a copy of Nostro reports sent to your branches directly to your central treasury. |
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59% look for services to integrate liquidity reports in applications. |
4 |
SWIFT can provide Consulting Services to integrate Nostro reports in your payment, cash management and treasury applications. |
In addition, several suggestions were made to develop new collaborative solutions, in particular to develop industry practice regarding intra-day reporting messages.
"This research reveals clear pain points and that SWIFT can help financial institutions reduce liquidity buffers, lower funding needs and comply with regulation," says Wim Raymaekers, Head of Banking Market, SWIFT. An executive summary of this research report is available. To receive the full details, please e-mail catherine.banneux@swift.com.
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