BNP Paribas Securities Services prepares for Basel III liquidity crunch

BNP Paribas Securities Services has launched its Liquidity Access solution that aims to help banks and broker-dealers to keep an eye on their liquid assets.

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BNP Paribas Securities Services (BNPP SS) has launched its Liquidity Access solution that aims to help banks and broker-dealers to keep an eye on their liquid assets.

The new products has been designed to help affected firms deal with the full implementation of Basel III’s higher minimum capital requirements coming in 2015.

The onus on banks to keep track of their loans and deposits is becoming increasingly weighty; 2015 will also see the first introduction of the Liquidity Coverage Ratio, requiring a bank to hold an equal or greater amount of high quality liquid assets as their net cash outflows over a 30-day period.

The Organisation for Economic Co-operation and Development’s working paper, ‘The Macroeconomic Impact of Basel III’, suggests that the medium term impact of the implementation of Basel III could decrease annual GDP growth by anywhere between 0.05% and 0.15%.

BNPP SS has added name to a long list of technology and analytics firms offering enterprise solutions in liquidity management as banks seek new ways to comply with the rules while making optimal use of their capital.

Florence Bonnevay, head of market and financial services, BNPP SS, said, "We are seeing huge demand from our clients to help them rethink the way they manage and monitor their liquid assets. The market is changing and so are we. We have devised a comprehensive liquidity solution, which enables our clients to anticipate their liquidity needs, take advantage of new liquidity facilities and optimise their cashflows.”

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