2.2 Oracle Financial Services Liquidity Risk Solution Pack

Starting Release 8.0.7, the approach to the earlier Liquidity Risk Management (LRM) application changed with the introduction of separate Stock Keeping Units (SKUs) for each jurisdiction. From Release 8.0.7 onwards the original liquidity risk application, that is, Oracle Financial Services Liquidity Risk Management, has been split in to four SKUs. These include:

  • Oracle Financial Services Liquidity Risk Measurement and Management (LRMM)
  • Oracle Financial Services Liquidity Risk Regulatory Calculations for US Federal Reserve (LRRCUSFR)
  • Oracle Financial Services Liquidity Risk Regulatory Calculations for European Banking Authority (LRRCEBA)
  • Oracle Financial Services Liquidity Risk Regulatory Calculations for Reserve Bank of India (LRRCRBI)

The other SKUs available in OFS LRS are:

  • Oracle Financial Services Liquidity Risk Regulatory Calculations for Bank of Thailand (LRRCBOT)
  • Oracle Financial Services Liquidity Risk Regulatory Calculations for Bank Negara Malaysia (LRRCBNM)
  • Oracle Financial Services Liquidity Risk Regulatory Calculations for Monetary Authority of Singapore (LRRCMAS)
  • Oracle Financial Services Liquidity Risk Regulatory Calculations for Hong Kong Monetary Authority (LRRCHKMA)

This split does not impact any functionality. All functionalities present in the earlier OFS LRM will continue to be available, and fully supported as part of the four new SKUs mentioned previously. Existing customers referring to the earlier OFS LRM User Guide Release 8.0.6, can now refer to the jurisdiction specific user guides for the complete functionality. See Related Information Sources for details.

In OFS LRS, all the jurisdictional SKUs are grouped under Liquidity Coverage Ratio (LCR) and all the deposit insurance calculation components are grouped under Deposit Insurance Calculation (DIC). The following table includes details of the products included in the LCR and DIC applications.

Table 2-1 Products Included in OFS LRS

Products Included Description
Liquidity Coverage Ratio (LCR) SKUs
Oracle Financial Services Liquidity Risk Measurement and Management (OFS LRMM)

This application comprehensively addresses an organization's liquidity risk requirements, both regulatory and management. It covers non-regulatory calculations required for managing liquidity risk within the bank itself, including stress testing, counterbalancing, liquidity gap calculation, intraday and real time intraday, and comprehensive dashboard reporting. It includes liquidity computations that address guidelines issued by Bank for International Settlements (BIS), covering:

  • Liquidity Coverage Ratio
  • Net Stable Funding Ratio
Oracle Financial Services Liquidity Risk Regulatory Calculations for US Federal Reserve (OFS LRRCUSFR)

This application includes liquidity computations that address guidelines issued by U.S. Federal Reserve, covering:

  • Liquidity Coverage Ratio
  • 5G Reporting Calculations
  • Regulation YY Calculations
  • Net Stable Funding Ratio
  • Non-regulatory features such as Forward LCR Calculations.
Oracle Financial Services Liquidity Risk Regulatory Calculations for Reserve Bank of India (OFS LRRCRBI)

The application includes liquidity computations that address guidelines issued by the Reserve Bank of India (RBI), covering:

  • Liquidity Coverage Ratio
  • Net Stable Funding Ratio
  • Forecasting
Oracle Financial Services Liquidity Risk Regulatory Calculations for European Banking Authority (OFS LRRCEBA)

The application includes liquidity computations that address guidelines issued by the European Banking Authority (EBA), covering:

  • Liquidity Coverage Ratio for EBA Delegated Act (DA)
  • Net Stable Funding Ratio for EBA Capital Requirements Regulation (CRR)
Oracle Financial Services Liquidity Risk Regulatory Calculations for Bank of Thailand (OFS LRRCBOT)

The application includes liquidity computations that address guidelines issued by the Bank of Thailand (BOT), covering:

  • Liquidity Coverage Ratio
  • Net Stable Funding Ratio
Oracle Financial Services Liquidity Risk Regulatory Calculations for Bank Negara Malaysia (OFS LRRCBNM)

The application includes liquidity computations that address guidelines issued by the Bank Negara Malaysia (BNM), covering:

  • Liquidity Coverage Ratio
  • Net Stable Funding Ratio
Oracle Financial Services Liquidity Risk Regulatory Calculations for Monetary Authority of Singapore (OFS LRRCMAS)

The application includes liquidity computations that address guidelines issued by the Monetary Authority of Singapore (MAS), covering:

  • Liquidity Coverage Ratio
  • Net Stable Funding Ratio
  • Minimum Liquid Assets Ratio
Oracle Financial Services Liquidity Risk Regulatory Calculations for Hong Kong Monetary Authority (OFS LRRCHKMA)

The application includes liquidity computations that address guidelines issued by the Hong Kong Monetary Authority (HKMA), covering:

  • Liquidity Coverage Ratio
  • Liquidity Maintenance Ratio
  • Net Stable Funding Ratio
  • Core Funding Ratio
Deposit Insurance Calculation (DIC)
Oracle Financial Services Deposit Insurance Calculations for Liquidity Risk Management (OFS DICLRM) This application covers deposit insurance calculations for the purpose of liquidity coverage ratio. Additionally, it includes calculations required for liquidity risk management.