SmartStream Technologies has introduced Intraday Liquidity Stress Testing module, and it is a part of the TLM Cash and Liquidity Management suite of products.
FREMONT, CA: SmartStream Technologies, a Transaction Lifecycle Management (TLM) solution provider, has announced the launch of Intraday Liquidity Stress Testing module, and it is a part of the TLM Cash and Liquidity Management suite of products. Carrying out such a stress test can be time-consuming as running it can take up to eight weeks. However, the new unit will permit the banks to run this in minutes, and it is vital to enhance the situation, conduct real-time decisions, reporting, and risk analysis.
SmartStream commissioned research from Baringa Partners, and it is a management consultancy firm. The firms' report emphasizes that if a bank can cut its liquidity buffer by $6bn, it can save as much as $50m per year. It has become essential for the banks to conduct stress testing so that they can enhance profitability and decrease the operational effort to maintain the regulatory conditions. With these factors in mind, SmartStream has developed the latest module to be able to offer stress test results instantly. The product is accessible as standalone or with the help of the cloud. The pandemic and the unstable circumstances have made such type of stress testing essential and have re-enforced the value of the solution to banks.
According to Nadeem Shamim, Head of Cash and Liquidity, SmartStream, states "The research carried out by Baringa Partners in conjunction with the development of our new module has created a great deal of interest in the market, we are currently having many detailed conversations with banks where the ability of a comprehensive solution with the flexibility of testing different stress scenarios is critical. Also the current turmoil in the market has had a big impact on a banks liquidity so the ability to model the potential impact of such occurrences is no longer simply a regulatory box-ticking exercise, but a matter of self-protection and even of survival for many financial institutions."