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LRC provides professional services focused on liquidity risk for banks.
liquidity quick check: we get into your bank and analyse the status quo of your liquidity risk management, we rate your strengths and weaknesses relative to global best practices and advise you how to improve.
After the quick check we go deeper in your LR methodologies and policies, the existing IT systems and processes We help you specify the management structure, the methodology and the functional / IT architecture that will be necessary to cover your needs and check it against the available infrastructure, including
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specification of a liquidity risk management policy including e.g. liquidity risk limits and liquidity transfer pricing in compliance with existing and upcoming regulatory demands
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functional blueprint of a liquidity risk system
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forward cash and asset inventory (financial transactions and resulting database of cashflows and asset flows as well as the holdings of cash and assets)
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necessary amendments to existing cashflow generators
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specification of product treatment for new cashflow generators
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handling of scenarios, strategies & stress tests
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assessment of the bank’s liquidity risk bearing ability in a stressed situation (counterbalancing capacity)
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strategies for the repo-ability and liquifiability of the eligible assets
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connection to the cash & payment management, reconciliation with nostros and accounting, etc. |
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We can build bespoke prototypes turning the main parts of the blueprint (LR database, cockpit, scenario generator, limit system, etc.) into a tangible and understandable solution, allowing you to properly judge if the envisaged liquidity risk system will match your requirements before you decide to build or buy (proof the concept)
we help with the ad hoc implementation of LR prototypes including all the necessary business analysis
production code: we can help you to convert the prototypes into production software
documentation: we can help you document the agreed methodology in white papers and develop LR procedures like contingency plans, limit excess processes, etc.
regulatory advisory: we can help you specify reports which are compliant with existing regulations – as we have access to a range of regulatory and standard setting bodies we can help you plan for upcoming regulatory requests.
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