Author: Julie Duncan

New Release – 9.60

Posted on by Julie Duncan

It has been a particularly challenging year for everyone involved in bank and building society asset liability management and regulation reporting. Whist it has taken us longer we are extremely proud to announce the release of ALMIS® Version 9.6 which includes the latest COREP/FINREP Taxonomy 2.2 to be used for December submissions.

This version is:,

 

  • Significantly FASTER at performing producing COREP reports COREP validations and generating XBRL (up to 50 times faster!!)

 

  • It has ALL COREP reports automated from ALMIS® data, including the CA, CR, LE and LR using capital adequacy calculations and LC and NSFR using liquidity calculations

 

  • It works to take account of EBA rounding rules so our validations will match Gabriel validations

 

  • Whilst 2.1 already included Asset Encumbrance this version is the version used for first submission

 

This is a significant milestone for us and we believe will help finance and treasury executives cope with the increasing regulations and help control risk and maximise the financial performance of your bank and building society.

We are particularly enthusiastic about helping our clients comply with the new CRD IV Liquidity regulations as we believe ALMIS® is the only product available to completely fulfil all the requirements set out in the PRA consultation CP 27/14. We have now developed the first ever product to deliver bank ALM, EBA regulation reporting, macro hedge accounting and detailed forward planning and analysis all using the same consistent data, settings and assumptions.

New CRD IV Liquidity rules are going to be a challenge for both small and large banks

Posted on by Julie Duncan

We are beginning to see some clarity for liquidity under CRD IV. The PRA have recently published a consultation paper CP27/14 and this is based on the EU Delegated ACT published on 10th October 2014.

So what does all this mean for Banks and Building Societies?

  • LCR reporting – the detail of COREP LC is an intricate reporting requirement and differs in complexity from the FSA 047 and 048. All banks need to produce BOTH and the PRA look like demanding the capability to report the LC daily. Firms will need to maintain reporting of FSA 047 and FSA 048 for up to two years after the introduction of the full suite of COREP liquidity returns in 2015.

  • LCR reporting is to become mandatory also for UK Branches of third country firms and UK designated investment firms.

  • Revoke BIPRU 12. This includes revoking the simplified ILAS regime and the requirement on firms to undertake standardised stress testing. Chapter 1.14 says the PRA recognises that the removal of the simplified ILAS modification will increase the compliance costs for those firms that previously benefited from it. Simplified ILAS firms such as small banks and building societies will also need to apply the same stress testing approach as other firms.

  • Carry forward the broad principles established in BIPRU 12 into the new regime.

  • Apply a transition to 100% LCR on 1 January 2018 in the following steps: an 80% requirement from 1 October 2015, rising to 90% on 1 January 2017. Table A at chapter 2.7 shows the PRA is applying higher percentages than the minimum path set down by Article 460 of the CRR.

  • Carry forward existing add-ons not covered in the LCR as the new Pillar 2 add-ons, until each firm’s next liquidity review.

  • Require that firms integrate fully the operational requirements outlined in Delegated Act Article 8.

  • Propose that if pre-positioned assets are not eligible for inclusion in the HQLA buffer, they cannot be used to meet the PRA’s quantitative liquidity guidance.

ALMIS® is particularly well placed to assist firms meet these regulations. We have a completely automated approach to producing the LCR and NSFR from source data and this will be particularly valuable in helping firms meet the daily requirement. Our sticky rules table is highly configurable and can be set up to meet the exact requirements of the Delegated ACT. Also from the same source data firms can set up and run a whole series of idiosyncratic and market-wide stress test. All this can also be forward looking to firms can see what their LCR is in say 7 days’ time or what the stress tests might look like as a result of its business and financial plans.

For further information please visit www.almis.co.uk or contact Jenna Haston to arrange a demonstration.

Integrated Solution – Consistent Internal and Regulatory Reporting

Posted on by Julie Duncan

ALMIS® gives financial institutions the ability to manage, monitor and report their financial risk profiles, providing their Executives and Boards with accurate information on current and forward looking positions to help them proactively monitor and plan. The same system provides a single version of the facts and for regulatory reporting.

BSA – Associate News : ALMIS® International article on Regulatory Reporting – Dealing with Change

Posted on by Julie Duncan

Regulatory Reporting – Dealing with Change

BASEL III, CRD IV, COREP, FINREP, BoE reports – the list is seemingly endless and, regardless of size or resource, all UK Building Societies have to comply with the specific demands of submission dates, report formats, data validations and auditability.

ALMIS® has helped more than 40 firms deal effectively with the burden and complexity of regulatory reporting.

ALMIS’ Feedback to Regulators

Our recent presentation to PRA supervisors, requested on behalf of firms, a single point of accurate validation rules to reduce instances of re-submissions. We also highlighted the interpretation differences and the need for more clarification.

Benefits of an Integrated System

Automation of reports and use of the same data sources for management information is a key objective for both regulators and firms. Societies that demonstrate synergy and joined up thinking in their approach are in the best position to take maximum advantage of the favourable interest margins and prove their competence to regulators.

With the rapid approach of the first FINREP submissions (with some clients asked to submit ahead of time), together with the new taxonomy 2.1 (including asset encumbrance reporting), finance departments must effectively combine their finance teams with technology such as ALMIS.

ALMIS® Launches Hosted Solution

Posted on by Julie Duncan

Controlling the system delivery to allow users to concentrate on the data that matters

The ALMIS® ALM system has operated successfully since 1992 as server-based software installed at a client’s premises. This works perfectly well for many firms, however, the advantages of a hosted system for some clients has presented the opportunity for ALMIS® International to launch a new ‘Hosted ALMIS® System’.

The Benefits

Our hosted solution enables clients to concentrate their resources on the key business needs addressed by ALMIS® ALM and Regulatory Reporting. The hosted solution eliminates all client interaction with IT infrastructure, software installation, performance issues and server maintenance. Hosting also provides data security and integrity and gives ALMIS® International the responsibility to ensure the current version of the ALMIS® system is used.

The hosted software solution is designed to work with small and large databases, whether one person or a hundred from the same organisation is using them. They accommodate the growth of your business seamlessly with optimal performance and minimum downtime.

The ALMIS® system operates seamlessly in this hosted environment, allowing the users to concentrate on the data – monitoring, analyzing and reporting across all areas of ALM and Regulatory Reporting.

How Does It Work?
The Hosted Operating Environment is the Microsoft Azure cloud-based service which uses a network of Microsoft-managed datacentres. This platform allows for resource usage to be based on needs and to be allocated and then charged for the processors and storage resources used. ALMIS® International installs, maintains and updates the system whilst the users simply access data from a PC-based web browser. Full functionality is available at all times depending on the ALMIS® modules the client has chosen to license.

For more information email.

Spotlight on Liquidity – Liquidity Coverage Ratio (LCR)

Posted on by Julie Duncan

ALMIS® enhances Liquidity Module with powerful Sticky Rules Table

Basel III set the global minimum standard for liquidity. The EBA (European Banking Authority), with the new COREP regime, introduced specific interpretation based on globally defined, detailed reporting requirements. These will be introduced as a Pillar 1 requirement in 2015, eventually replacing BIPRU 12.

Liquidity coverage requirements specify that firms should maintain liquidity buffers which are adequate to face any possible imbalance between liquidity inflows and outflows under gravely stressed conditions over a period of thirty days.

Part of the new guidance stipulates the need for a greater degree of granularity of reporting of retail outcomes under stress conditions to ensure LCR are met. Firms now need a powerful Liquidity system that can accurately categorise risk factors and calculate complex combinations to simulate various stress scenarios. They need to determine the optimal liquidity coverage (LC) for stress conditions ranging from grave to ‘business as usual’.

ALMIS® Sticky Rules Table for the Liquidity Module

The ALMIS® Liquidity module has been enhanced ahead of the regulatory deadline to include powerful ‘Sticky Table’ logic to enable firms to quickly and reliably calculate retail outflows in order to comply with EBA guidelines for LCR.

The Sticky Rules Table will analyse and calculate (according to the guideline Categories 1, 2 and 3), combinations of High Risk Factors (HRF) and Very High Risk Factors (VHRF) including:

  • Customer view (including country of residence, value of deposit, currency, strength of relationship)

  • Product view (including distribution or product characteristics)

  • Maturity view for notice and fixed accounts

LCR and Regulatory COREP Reporting

Our system provides:

  • Auto-population of Liquidity Coverage Templates for COREP to save time and resources and help reduce data errors

  • New, enhanced report for Liquidity Coverage

  • More detailed analysis of Deposit by Customer

ALMIS® LCR to optimise liquidity Management

Whilst comprehensive LCR is essential for regulatory reporting, it is also a vital tool in the management information strategy of any banking institution. The ability to conduct analysis under different stress scenarios will provide management teams with more accurate management information to create the appropriate level and type of liquidity for both compliance and profitability.

For more information on LCR and the ALMIS® Liquidity module contact [email protected]

Spotlight on Liquidity – Joe Di Rollo’s presentation at the BBA Annual Liquidity Conference 2014

ALMIS® International were the Headline Sponsor for the BBA’s Annual Liquidity Conference held in London at the end of April.

Joe Di Rollo of ALMIS® International presented on the key topic of “Implications of BASEL III and COREP on a Bank’s organisational structure and IT strategy”

To view selected slides from Joe Di Rollo’s presentation at the BBA Annual Liquidity Conference 2014 go to click or for a copy of his full presentation email us at [email protected]

For more information on the BBA

Spotlight on Liquidity – Joe Di Rollo’s presentation at the BBA Annual Liquidity Conference 2014

Posted on by Julie Duncan

ALMIS® International were the Headline Sponsor for the BBA’s Annual Liquidity Conference held in London at the end of April.

Joe Di Rollo of ALMIS® International presented on the key topic of “Implications of BASEL III and COREP on a Bank’s organisational structure and IT strategy”

To view selected slides from Joe Di Rollo’s presentation at the BBA Annual Liquidity Conference 2014 click or for a copy of his full presentation email

For more information on the BBA

EBA’s interactive single rulebook available online

Posted on by Julie Duncan

The EBA has published an excellent online tool, cross-referencing all the technical standards to the Level 1 texts and any official Q&A.

To access the “Single Rulebook” click

ALMIS® Automates Large Exposure (LE) Reporting – helping firms overcome the increased demands of LE Reporting for COREP

Posted on by Julie Duncan

Fact: LE reporting for the new COREP regime is detailed, demanding and complex

Fact: LE reporting now consists of 6 different reports

Fact: Firms should report two different measures of LE

  • Each LE being more than 10% of eligible capital

  • The 10 largest exposures by type, value and maturity

Fact: LE reporting needs to separately show connected groups of counterparties, NACE codes and legal entity identifiers (LEI’s)

This all adds up to a significant reporting burden for any finance department!

Fact: Using ALMIS® Capital Adequacy and COREP Reporting can significantly reduce this burden

Firms have previously benefited from using the ALMIS® system (Capital Adequacy Module) to monitor, control and report LE. Our enhanced Capital Adequacy and Reporting capabilities give them the power, flexibility and control to automate this process – now even more important to address the more detailed and complex reporting.

Firms need to use the same data to calculate LE as for CR (Credit Risk). The ALMIS® system seamlessly integrates and automates CA, CR and LE COREP returns using the Capital Adequacy module. This helps firms by:

  • Saving time and resources

  • Reducing input errors

  • Creating a single consistent version of the data

  • Providing a more comprehensive audit trail

  • Giving confidence to the regulators by using a controlled and integrated solution

For more information on how ALMIS® can help reduce your LE reporting burden, contact [email protected]

COREP Delayed

Posted on by Julie Duncan

ALMIS® International are ready for COREP reporting but banking firms can breathe a sigh of relief as the new Regulation deadlines are delayed.

The EBA has today announced that the submission dates for the first set of COREP reports will be postponed from April/May 2014 to end June 2014, there is no change to the reference dates.

The postponement affects the following reports:

  • The first quarterly reports (own funds, large exposures, leverage ratio, and net stable funding ratio) with reference dates as of 31 March 2014 are now due end June 2014, as opposed to end May 2014.

  • The first monthly liquidity reports with reference dates of 31 March 2014 and 30 April 2014 are now due end of June 2014 as opposed to April 2014.

  • The first reporting reference date for asset encumbrance will be 31 December 2014 and the first remittance date will be 11 February 2015.

For more information on this update, see the EBA website

Georgina Macleod, Client Support Manager, commented ‘ALMIS® is ready for the first submission but there were so many technical difficulties and challenges facing firms that the delay will be welcomed by our clients. This gives us all a good opportunity to now implement the regulations properly’