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
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’
“Complex topics described very well” M. Lynch, BLME
An Overview
The ALM Academy, developed and presented by ALMIS® International, successfully launched its first seminar on Thursday 27th March 2014. This series of high-level seminars has been specifically developed for directors, senior banking executives and members of a bank or building society ALCO to address key areas of ALM with a focus on the principals and strategic implications of the latest CRD IV regulations.
Our enthusiastic and knowledgeable delegates fully engaged in the interactive programme of workshops, discussions and the sharing of ideas under Chatham House rules. Delegates agreed that limiting the number of participants to 16 enabled more productive discussion and in-depth analysis of the issues.
The Delegate Experience
Overall feedback was very positive with 90% of the delegates agreeing that the content was informative, well presented and highly relevant. In particular, the use of case studies proved to be a very effective mechanism for understanding and applying ALM principals. We have taken on board suggestions for additional case study examples for future seminars. Here are just a few of the comments from the very satisfied inaugural ALM Academy class!
“A very useful day of both presentations and discussions around the key issues” N. Walker, Marsden Building Society
“A good grounding in Capital and Liquidity” R. Hetherington, Buckinghamshire Building Society
“Good overview of everything and deeper on the parts I wanted. Great to have case studies, good balance of difficulty and time.” S. Cotterill, Holmesdale Building Society
“Excellent day” A. Evans, Teachers Building Society
Topics Covered
The morning session included an insightful presentation on the overview of ALM under CRD IV as well as an in-depth review of IRRBB coupled with an interactive case study. This highlighted the significant benefits of using an integrated system such as ALMIS® for both ALM and Regulatory Reporting. We also covered analysis on Capital Adequacy under CRD IV with a particular focus on Risk weighted assets and CVA capital requirements.
The afternoon session concentrated on the topical subject of Liquidity management under CRD IV followed by a case study that examined a sample balance sheet for which all participants were asked to calculate ILG, LCR and NSFR.
The day concluded with an insight into Margin Management and FTP followed by discussion of Management framework and best practice.
Expert speakers on the day were Colin Johnson, Gianfranco De Martino, Andrew Capps and Joe Di Rollo. Full speaker profiles and seminar details can be found on our website.
Future Seminars
The initial seminar generated significant demand from the banking community throughout the UK. In response we are repeating the March seminar at the following locations:
London – Thursday June 12th 2014, The Grange Hotel St. Pauls, London.
Edinburgh – June 2014 – date and location TBC.
Places are limited so register your interest now by contacting Cecilia Mueller, Business Development Executive or call 0131 452 8898.
Paragon Bank (part of the FTSE 250 Paragon Group of Companies PLC), was recently granted a banking licence by the Prudential Regulation Authority. The PRA has also confirmed that it is ready to grant a banking licence to SCOBAN plc. A key part of the licence application is for firms to set out their plans for monitoring and managing their own specific financial risk profiles.
The UK regulators are known for their high standards and stringent tests for institutions seeking licence approval. Effective risk management is an essential requirement, and one of the main challenges on the road to obtaining a banking licence. By effective use of ALMIS® International’s Asset Liability Management system to assess, manage and monitor risk, the PRA were able to take comfort that both Paragon and SCOBAN have the right tools to successfully demonstrate prudential risk management.
Joe Di Rollo, MD and Founder of ALMIS® International, notes: “Our long and collaborative association with the regulatory authorities, including the PRA, has underpinned the development of an ALM risk management system that meets and exceeds the requirements of both the regulators and our clients. Paragon Bank and SCOBAN plc are the latest in a growing number of ALMIS® clients demonstrating that effective use of ALMIS® equips them to challenge established banks with confidence”.
A number of clients have contacted us this week regarding a questionnaire from the PRA over your readiness for COREP.
The EBA published the latest Data Point Model and Taxonomy in early December 2013. We have been working on a significant number of material changes to both COREP and FINREP, including changes and additions to the LCR and NSFR returns. This also included entirely new and extensive validations.
We have released an update to capital adequacy and balance sheet reporting in order to automatically calculate a substantial number of COREP and FINREP returns. This release is currently available on our website and is suitable for testing the report calculations and functionality.
Next week we are scheduled to release a version update which will include the very latest Taxonomy. We will be testing the XBRL files using a range of sample data with facilities that have been given to us directly by the PRA. This version will give clients all they need to meet the specific regulations, including submission forms for LCR and NSFR.
In March we will release V9.6 which includes updates to the liquidity module and an automatic calculation facility for the new LCR and NSFR. It will also have automatic calculation for the new Large Exposures.
Clients should note that Our January release will meet the deadlines 3 months in advance of the submission deadlines. This includes automation for the majority but not all returns. Our March release will provide further automation.
Our aims and priorities are:
1) To ensure that all of our clients meet the necessary deadlines
2) We provide the ability to streamline and automate these processes going forward
3) We deliver analysis tools to make best use of the management information used to aid decision making
The latest CRD IV regulations make small changes to risk-weighted credit exposure for banking institutions, except in the area of derivatives where the exposure can now be significantly higher.
With the regulations effective from January 1st 2014, many UK banks are simply not ready to calculate this risk. The calculation is highly complex and can result in significant additional capital requirements as explained in Article 384 of the CRR, 27/06/13.
For example, a 20 year collateralised interest rate swap with one of the large UK clearing banks could result in a capital requirement over 20 times greater than the current regime.
ALMIS® International believe it is the first company to provide its clients with a fully functional CVA risk report. Their client base trust the ALMIS® system to anticipate the regulatory landscape and to respond so quickly and effectively to ensure its users understand the implications and are able to easily comply with changes to the CRD IV regulations.
For more information about how the ALMIS® software can benefit you, contact Cecilia Mueller, Business Development Executive or call +44 (0)131 452 8898
Whilst COREP has been dominating the headlines in terms of changes in the regulatory reporting environment, new Hedge Accounting standards are being introduced for banking firms. Many of our clients can take advantage of having the data already installed and easily slot in the Hedge Accounting module to ensure compliance with the new standard.
A recent example of this is with The Cambridge Building Society, for more information click on the link below:
CASE STUDY: “Hedge Accounting In A Day”
For further information on the Hedge Accounting Module, click here or contact ALMIS® International.
Formally confirmed on the 27th June 2013; CRD IV legislation has been formally published in the Official Journal of the EU. This affirms that the new legislation will come into effect from 1st January 2014.
As you may be aware, the CRD IV package adoption date has been subject to numerous delays. The original implementation date of 1st January 2013 was repeatedly pushed back due to the lengthy approval process involved in the finalisation of legislative text. The final content and template layouts are awaiting confirmation, additionally it has still not been confirmed if this submission will include the LCR, NSFR and Leverage Ratio.
Now that the date for COREP has been finalised, many financial institutions are now looking for a solution which will enable them to create, validate and submit the reports. The EBA require all firms to be in a position to submit returns in the standardised XBRL format for the first set of submissions starting on 1st January 2014.
ALMIS® International have developed a solution to help with the burden placed on financial institutions. The Regulatory Reporting functionality within the ALMIS® system is developed in line with these changes to ensure clients are best placed to meet the extensive regulatory demands placed upon them.
Many firms have placed their trust in ALMIS® to ensure their compliance for the new regulations. ALMIS® caters for a wide range of institutions’ requirements, from providing a basic submissions vehicle with manual inputs, to spreadsheet integration, all the way to full automatic population.
The ALMIS® Regulatory Reporting Module has been extensively developed to include an effective and time saving solution to FSA, CRD IV and BoE reporting. ALMIS® offers effective workflow management, validation routines and full audit trails to allow for efficient management and full compliance.
We are pleased to announce that we have now moved office; our new head office has been fitted to our specification in order to accommodate our growth plans and the expansion of the ALMIS® workforce, in particular the significant growth to the development and support functions within the company.
As well as providing more space the new office will provide ALMIS® with the ability to provide clients with further training options thanks to the dedicated training facilities on site. We are holding a number of free ALMIS® training sessions for clients, these will be based on a variety of topics, including:
Using ALMIS® for COREP (HELD Thursday 6th June 2013)
Interest rate risk function – EVA and Earning sensitivity (HELD Thursday 20th June 2013)
Forward Planning using ALMIS® (HELD Thursday 4th July 2013)
Liquidity and Capital Management using ALMIS® (HELD Wednesday 17th July 2013)
Liquidity and Capital Management using ALMIS® (HELD Thursday 18th July 2013)
Using the report writer (HELD Thursday 1st August 2013)
Hedge Accounting in ALMIS® (Thursday 15th August 2013) FULLY BOOKED WAITING LIST
Spaces are limited, to book a space or to be placed on a waiting list, click on the link next to the relevant session above.
Please Note: If you have previously registered for more than one session, we do our best to allocate your first choice. Should there be space on any sessions you ranked lower in preference we will inform you if you have been allocated a space 2 weeks before the training session is due to take place.
For further information on any of these sessions please contact Georgina Macleod.
Thank you to everyone who attended the ALMIS® International “Developments in Bank Liquidity and Capital Management Regulations and Practices” Seminar which was held on Wednesday 10th April 2013 in Central London.
Delegates particularly welcomed the chance to hear directly from the newly formed PRA on the impending regulatory developments.
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“Engagement with regulators very useful” |
With over 40 banking institutions from small to medium sized banks, we feel we were able to address the topics that were particularly relevant.
During the afternoon session ALMIS® clients were given practical advice on the latest liquidity and capital ratios and also reporting under the funding for lending scheme.
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“Regulatory content was especially useful. Well attended, good to hear what others are doing” |
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“Informative, relevant and the opportunity to discuss topics with peers” |
Please contact Georgina Macleod for further information.
Established in 1992, ALMIS® International are Asset Liability Management specialists. Our mission is to develop, deliver and support world class asset liability management solutions addressing the regulatory and reporting demands of modern competitive and independent banking institutions.
Using ALMIS® it is possible to perform Regulatory Reporting using the same platform as is used for the generation of ALCO packs and for forward looking analysis. The ALMIS® Regulatory Reporting platform includes FSA (Gabriel), BoE (OSCA), and CRD IV (COREP/FINREP). ALMIS® saves banking institutions time and resource taking the burden out of regulatory compliance and management reporting.