The Basel Committee on Banking Supervision introduced two liquidity ratios, the Liquidity Coverage Ratio (LCR) and the Net Stable Funding Ratio (NSFR), as part of the Basel III reforms. These ratios are aimed at ensuring that financial institutions have sufficient liquidity to meet their short-term and long-term obligations under stress scenarios. Compliance with these ratios is critical for financial institutions, and accurate reporting on a daily basis is necessary to maintain regulatory compliance.
Surya's BASEL III LR Module, along with its superfast data engine, enables financial institutions to accurately calculate and report on these liquidity ratios. The solution is designed to collect specific data and calculate these ratios at the most granular level, while accounting for various regulatory requirements. It provides a range of scenarios and generates comprehensive reports for various regulatory requirements, enabling financial institutions to comply with regulations with ease. With Surya's BASEL III LR Module, financial institutions can rest assured that their liquidity ratio reporting is accurate, timely, and compliant.
Unscheduled draws on committed but unused credit and liquidity facilities that the Bank/FI has provided to its clients. The potential need for the Bank/FI to buy back debt or honour non-contractual obligations in the interest of mitigating reputational risk