Bloomberg aids Rabobank鈥檚 Basel III compliance
17 September 2015 Utrecht
Image: Shutterstock
Rabobank is the latest bank to adopt Bloomberg鈥檚 high quality liquid assets (HQLA) solution to assist with Basel III compliance requirements.
Bloomberg鈥檚 HQLA solution allows Rabobank to monitor its liquidity buffer and ensure it fulfils Basel III鈥檚 liquidity coverage ratio (LCR) requirement, which will be enacted on 1 October.
The LCR requires banks operating in Europe to hold an adequate number of assets that can be converted easily and immediately into cash in private markets with no or little loss of value, even in stressed market conditions.
Verifying the eligibility of HQLA requires global market expertise and a large amount of descriptive data, which needs to be organised into logical rule sets accounting for each jurisdiction鈥檚 HQLA definitions.
In addition, the data sets need to be tested on a daily basis to reflect security level changes.
The LCR will be progressively implemented in Europe between 2015 and 2018 under the Capital Requirements Regulation.
Allan Bolk, Rabobank鈥檚 head of securities finance and repo in Europe, said: 鈥淭he tool will allow us to track and report our liquidity buffer efficiently on a consistent and daily basis and will enable our treasury to manage and optimise its investment decisions with real-time classifications.鈥�
Bloomberg鈥檚 HQLA solution allows Rabobank to monitor its liquidity buffer and ensure it fulfils Basel III鈥檚 liquidity coverage ratio (LCR) requirement, which will be enacted on 1 October.
The LCR requires banks operating in Europe to hold an adequate number of assets that can be converted easily and immediately into cash in private markets with no or little loss of value, even in stressed market conditions.
Verifying the eligibility of HQLA requires global market expertise and a large amount of descriptive data, which needs to be organised into logical rule sets accounting for each jurisdiction鈥檚 HQLA definitions.
In addition, the data sets need to be tested on a daily basis to reflect security level changes.
The LCR will be progressively implemented in Europe between 2015 and 2018 under the Capital Requirements Regulation.
Allan Bolk, Rabobank鈥檚 head of securities finance and repo in Europe, said: 鈥淭he tool will allow us to track and report our liquidity buffer efficiently on a consistent and daily basis and will enable our treasury to manage and optimise its investment decisions with real-time classifications.鈥�
NO FEE, NO RISK
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to 麻豆传媒 Finance Times
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to 麻豆传媒 Finance Times
