Intraday Liquidity Monitoring Solution

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4 Treasury and Trade Solutions Global Clearing & FI Payments Citi Academy for Financial Institutions July 2015 Intraday Liquidity Monitoring Solution Carolina Caballero Intraday Liquidity Product Manager Global Clearing and FI Payments

5 The Case For Efficiently Managing Intraday Liquidity BASEL III Basel Committee for Banking Supervision (BCBS) published Intraday Liquidity Monitoring guidance in 2013 Requires clearing participants to monitor and report on intraday liquidity starting January 2015 in BCBS member jurisdictions* Evolving Banking Landscape There is increased regulatory and industry momentum for banks to manage intraday liquidity more efficiently Tools that monitor and report intraday liquidity information on a real time basis are an imperative Challenges for Banks Capabilities to measure intraday liquidity require significant resource allocation, spend and scale Challenges facing Banks go beyond direct costs including system complexity, data collection and timing of regulation BCBS Member countries: Argentina, Australia, Belgium, Brazil, Canada, China, France, Germany, Hong Kong SAR, India, Indonesia, Italy, Japan, Korea, Luxembourg, Mexico, Netherlands, Russia, Saudi Arabia, Singapore, South Africa, Spain, Sweden, Switzerland, Turkey, United Kingdom, United States 1

6 Key BCBS Intraday Liquidity Monitoring Requirements BCBS Intraday Liquidity Guidelines 1 include requirements for monitoring and reporting. Reportable indicators are expected in all market conditions including normal, bank-specific & stress scenarios BCBS Intraday Liquidity Monitoring Requirements Summary All Reporting Banks Correspondent Banking Service Providers Direct Clearing Participants Daily maximum intraday liquidity usage Available intraday liquidity resources at start of day Total Payments (Sent & Received) Time-specific Obligations Intraday throughput (hourly) Value of payments made on behalf of correspondent banking customers Intraday credit lines extended to customers (used & unused) Timing of intraday payments 1 Please refer to the BCBS April 2013 consultative document here for full details on monitoring and reporting requirements: 2

7 Our Understanding of your Intraday Liquidity Needs Financial Institutions Intraday Liquidity Pain Points: Lack of real-time data for monitoring Intraday Liquidity usage Limited transparency into start of day, end of day and Intraday balances in relation to Basel III LCR Framework Inability to meet BCBS regulatory reporting on Intraday Liquidity metrics within the stipulated timeframe Citi Intraday Liquidity Monitoring Solution Leverage Citi to help you manage your Intraday Liquidity usage more efficiently: Real-time visualization of Intraday Liquidity and Global Payment flows Customizable reporting for regulatory compliance Convenient data access through one portal (CitiDirect BE SM ) and drop box 3

8 Key Benefits of Citi Intraday Liquidity Monitoring Citi s industrial strength and real time capabilities on Intraday Liquidity management now available for your everyday needs. Intraday Liquidity Management Improve Intraday Liquidity efficiencies with real time data on intraday balances, payment flows and book transfers View counterparty exposure to better manage concentration risk Establish patterns on liquidity usage to optimize intraday and end-of-day positions Regulatory Reporting Build customizable reports that support BCBS Intraday Liquidity metrics Minimize technology spend related to data collection Schedule standard reports to be delivered at specific time intervals Information Access Access main clearing currencies intraday position information through a single portal Friendly user interface with secured data and entitlements in place Readily available product support 4

9 Intraday Liquidity Monitoring on CitiDirect BE

10 Intraday Liquidity Monitoring: Reporting BCBS requires direct and indirect clearing participants to report on intraday liquidity metrics and positions for submission to local regulators. Main Key Functionality Benefits Intraday reporting metrics selection Customizable reports Report delivery options Meet BCBS Intraday reporting metrics requirements from one application Customize reports based on time, currency and legal entity Choose preferred method for receiving reports Regulatory Report Types Available for Download Daily maximum intraday liquidity usage Available intraday liquidity at the start of the business day (also include account balances) Total Payments (In / Out) Time-Critical Obligations 10

11 Intraday Liquidity Monitoring: Sample Report - Monthly Max Usage Monthly report contains: 1. Average Start of Day Balance 2. 3 Largest Monthly Minimums 3. 3 Largest Positive Net Positions 4. 3 Largest Negative Net Cumulative Position 11

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