NEW YORK, Nov. 5, 2020 /PRNewswire/ -- AxiomSL, the industry's leading provider of risk and regulatory reporting solutions, today announces the development of a solution to address Net Stable Funding Ratio (NSFR) reporting requirements. Finalized in October of 2020 and going into effect in July of 2021, the NSFR rules require banking institutions to maintain stable funding to cover all or a portion of their business activities – depending upon the size of the bank – for a period of one year. The AxiomSL NSFR solution will automatically gather necessary data and perform this calculation, streamlining workflows while facilitating the measure of compliance with the new rule.
Under the NSFR requirements, the largest, global systemically important banks (G-SIBs), or Tier I institutions and Tier II banks, must cover 100% their Required Stable Funding over the course of one year with Available Stable Funding – such as consumer deposits, regulatory capital or long-term debt. Smaller banks, falling into the Tier III-IV categories, will need maintain either 85% or 70% of Available Stable Funding to cover their Required Stable Funding. The data required to calculate this ratio is drawn from across the banking institution, and includes a large portion of data attributes already reported in the Federal Reserve's FR2052a report, such as unencumbered assets, liabilities, funding activities and contingent liabilities, along with data and attributes required to measure available and required stable funding.
With its new NSFR solution, AxiomSL automates the data collection, calculation and reporting process required to streamline NSFR compliance. Building on its liquidity monitoring solutions for FR 2052a, the new technology will be delivered via AxiomSL's ControllerView® transparent data integrity and control platform. The solution will automatically populate and validate the reports required for all aspects of NSFR.
"NSFR is a complicated requirement that has been talked about in the industry for years, but did not get finalized until October of this year and banks must now be fully compliant in just 8 months," said Ed Probst, General Manager, North America Product, AxiomSL. "Fortunately, we have been developing this solution for the last several years in tandem with our liquidity reporting solutions (2052a) in anticipation of the rule. That advance groundwork has put us into position to launch a fully functional reporting solution that addresses the NSFR needs of banks of every size and ensure that they will be compliant by the deadline."
The deadline for NSFR will be July 1, 2021, however, banks must prepare to implement the rule's complex new data collection, categorization, capital calculation and reporting requirements now.
For more information on AxiomSL's NSFR reporting solution, please click here.
About AxiomSL
AxiomSL is a global leader in risk analytics, data-management, and regulatory-reporting solutions. Leveraging more than 25 years' experience, AxiomSL combines its deep industry experience and intelligent data-management platform to deliver solutions and services around regulatory and risk reporting, liquidity, capital and credit, operations, trade and transactions, and tax analytics. The platform can be deployed on premise or on the cloud. Its client base spans regional and global financial institutions with more than $43 trillion in total assets and investment managers with more than $11 trillion in assets under management. Its coverage encompasses more than 110 regulators across 55 jurisdictions. AxiomSL is in the top 20 of the Chartis RiskTech100® 2020 ranking.
Website: www.axiomsl.com
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SOURCE AxiomSL
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