Risk Software Technologies-RST, has developed Liquidity Risk solution as a tool to help banks calculate LCR and NSFR, and derive LKO120HS required by BRSA’s for liquidity risk. Through a user-friendly interface, Riskturk Liquidity Risk solution presents the banks with an analysis and reporting framework that would let them predict and assess their short-term liquidty risk effectively and derive LKO120HS form in the format required by BRSA. This solution also enable to stress test LKO by scenario analysis.
Liquidity Coverage Ratio-LCR is an essential component of Basel III reforms. It aims to ensure that a bank has an adequate stock of unencumbered high-quality liquid assetss (HQLA) to meet liquidty needs during a 30- calendar day period of severe liquidty stress. It is a measure of the banks short term liquidty risk.
LKO, is BRSA-Banking Regulation and Supervision Agency’s adjustment of LCR to Turkish banks. LKO, is a daily report to assess a bank’s short term liquidty risk. It has two components:
LKO (LCR) is given by the following ratio:
Risk Software Technologies-RST, has developed LKO solution as a tool to help banks calculate LKO and derive LKO120HS required by BRSA’s for liquidity risk. Through a user-friendly interface, Riskturk LKO solution presents the banks with an analysis and reporting framework that would let them predict and assess their short-term liquidty risk effectively and derive LKO120HS form in the format required by BRSA. RST LKO solution also enable to stress test LKO by scenario analysis.
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