التكنولوجيا وأخبارها بوابة الإمارات لتكنولوجيا المعلومات والإتصالات
SmartStream commissioned research from Baringa
Partners, a management consultancy firm, and the report
highlighted that if a bank could cut its liquidity buffer by
$6bn, it may save as much as $50m per year. There is a
clear need for banks to carry out stress testing to improve
profitability and reduce operational effort to meet the
regulatory requirements. With these considerations in
mind, SmartStream developed the new module to provide
stress test results immediately. The product is available as
standalone or via the cloud. The pandemic and the
turbulent conditions have made this type of stress testing
more essential and re-enforced the value of such a solution
to banks.
Nadeem Shamim, Head of Cash and Liquidity, SmartStream,
states: “The research carried out by Baringa Partners in
conjunction with the development of our new module has
created a great deal of interest in the market, we are
currently having many detailed conversations with banks
where the ability of a comprehensive solution with the
flexibility of testing different stress scenarios is critical.
Also the current turmoil in the market has had a big impact
on a bank’s liquidity – so the ability to model the potential
impact of such occurrences is no longer simply a regulatory
box-ticking exercise, but a matter of self-protection and
even of survival for many financial institutions”.
Simon Gray, Director, Baringa Partners, says: “The research
identifies that it’s no longer about meeting intraday
liquidity reporting requirements, banks are now seeing
value in stress testing and having the tools to carry out
complex scenarios with a high degree of accuracy for
making more informed decisions. In addition, the findings
revealed that it has gone from being a regulatory burden to
creating a stringent, active framework within which to
manage liquidity risk. By simplifying the complex and time-
consuming testing process, SmartStream’s solution allows
banks to run a variety of stress scenarios in a short space of
time, which is critical”.
