Intraday Liquidity Reporting: How has the industry progressed?

Mumbai, 23 October 2015 – The last day at Sibos witnessed the panel discussion on the Basel norms III (Basel Committee on Banking Supervision) to reduce the operational costs and how the monitoring tools will transform the liquidity services. The panel discussed the current regulatory programmes and the collaborative initiatives of their respective National regulators on the Basel III norms on Intra-day liquidity reporting management tools.

The panellists included Christian Goerlach, Deutsche Bank; Matthew Loos, JPMorgan; Mohan Tanksale, IBA and Dennis Sweeney, Societe Generale.

Mr Mohan Tanksale, Chief Executive IBA, mentioned that RBI’s guidelines on Intra-day Liquidity Monitoring Tools are similar to the Basel norms. He emphasized that though there are certain issues and challenges in the intra-day liquidity; however, the banks in India do not see any challenge in real time and intra-day liquidity monitoring. State bank of India, largest bank in India, currently performs daily CRR drills, fortnightly forecasts and real time monitoring of accounts to RBI.

In the Indian banking scenario, liquidity reporting is seen more from the compliance stand point of view. However, the economic crisis of 2008 and more recently of 2013 brought such issues more in focus in terms of the regulatory pressures in terms of intra-day liquidity of banks and their correspondent banks.