FRSGlobal

FRSGlobal breakfast meeting on Liquidity and ALM in Singapore

The Basel III reforms were introduced in light of the financial crisis, to strengthen the resilience of the banking sector. However, in Asia, there are concerns that the more stringent liquidity requirements will pose certain challenges, as there are insufficient types of asset that are considered liquid, as specified by the Basel III rules, in particular the liquidity coverage ratio (LCR).

This might be more pronounced in countries such as Singapore, Hong Kong and Australia where the governments tend to have budget surpluses and hence lower levels of domestic sovereign debts. Hence, there are concerns that compliance with these Basel III Liquidity requirements may have the unintended consequence of increasing the bank's funding cost. Moreover, if the bank holds foreign sovereign bonds issued by another country, there will be an increase in the foreign exchange risks.

Learn more about what this means for Singapore and join us at our FRSGlobal breakfast meeting to be held on the 8th July 2011 at the InterContinental Singapore.

Our Head of Global Regulatory Policy, Selwyn Blair-Ford, from FRSGlobal gave a presentation on:

• Impact of Basel III liquidity requirements
• Asian liquidity vs. Financial Services Authority (FSA)
• Liquidity measures across Asia
• Ratios, Modelling techniques and more
• Lessons learnt from the UK

Following Selwyn, we were delighted to welcome Eugene Lim, Head of Risk for Asia Pacific & Japan, from FRSGlobal who provided an overview of the key benefits of our RiskPro solution supported by a product demonstration from Sheldon Goh, Regional Solutions Manager, FRSGlobal.

As the full impact of the regulatory framework is still being analysed, it is understood that there might be updates and changes along the way. The old ways of viewing risk management in solo and maintaining large teams to support in-house solution, is no longer feasible and cost-effective. Banks will need to have a robust integrated risk and regulatory reporting system, designed with the capability to meet the dynamic global regulatory reporting requirement.

The seminar was particularly relevant to senior executives responsible for managing financial information, compliance, regulatory reporting and risk management for financial institutions operating in Oman.

FRSGlobal part of Wolters Kluwer Financial Services Limited is a leading worldwide provider of compliance and risk management solutions for the financial services industry.