Moody's Analytics today announces the launch of its liquidity management and regulatory reporting solution that enables UK institutions to meet all of the Financial Services Authority's new regulatory requirements (as outlined in the CP08/22, CP09/13 and CP09/14 papers) and at the same time enhance internal liquidity management practices beyond regulatory needs.
Moody's Analytics' FSA liquidity management compliance solution, which combines software and professional services, is built with both regulatory requirements and broader risk management challenges in mind, offering a range of benefits spanning data collection, stress simulation, regulatory calculations, and group-wide enhanced liquidity management.
Challenges for UK institutions
The FSA's new quantitative regime and related reporting requirements are aimed at better highlighting liquidity risks in individual institutions and across the economy, as well as enabling the authority to identify outlier business models and management practices.
UK-based financial institutions face challenges in meeting these requirements at a time when the liquidity crisis has prompted financial firms to strengthen group-wide liquidity risk management practices.
Through the combined expertise from its software products -- Fermat ALM/Liquidity Risk and Fermat/Regulatory Reporting Tool -- and its consulting practice, Moody's Analytics' approach allows customers to meet FSA compliance requirements while also improving risk returns across the organisation through the implementation of a true liquidity management solution. "There is currently no other multi-expert solution like this on the market," says Alessio Balduini, Managing Director at Moody's Analytics.
Moody's Analytics' comprehensive approach
Traditional ALM software and excel-based processes lack data centralisation and automated cleanup features and are not designed to manage either vast amounts of data across multiple businesses or fast regulatory reporting.
Moody's Analytics' unparalleled, integrated solution for UK institutions' regulatory compliance needs includes:
- Expert off-the-shelf and custom-built market-driven and customer behavioural stress scenarios
- A fully integrated ALM and regulatory reporting software ssolution also allowing for group-wide liquidity management
- Compliance management services including validation of regulatory calculations and reports
In addition, Moody's Analytics helps financial institutions exceed regulatory requirements through:
- Advisory services on liquidity risk mitigation strategies and simulations
- Guidance on optimizing investments in liquidity management solutions to improve internal decision-making
- Professional services to help improve liquidity management skills
- Seamless integration with enterprise risk management software
"Moody's Analytics' software suite has a long-established reputation for providing advanced risk management solutions, especially under Basel II. Major European institutions already rely on our products to manage their regulatory reporting and broader risk management needs," explains Geoff Fite, Moody's Analytics' Chief Operating Officer. "Our integrated liquidity management and reporting solution is continuing this tradition."