ZMdesk's Liquidity Coverage Ratio Functionality Enhancement

Posted on 08/20/2015 by

ZM Financial Systems’ ZMdesk clients now stand more prepared to meet new liquidity risk measurement standards with its modified Liquidity Coverage Ratio (LCR) functionality enhancement.


Developed specifically to meet the requirements set forth by the U.S. banking agencies, ZMdesk’s modified LCR enhancement helps to quickly and accurately measure an institution’s stock of high-quality liquid assets relative to a shocked level of modified net cash outflows over a 30-day time frame. The Federal Reserve Board’s modified LCR requirement applies to holding companies with average total consolidated assets equal to or exceeding $50 billion.


“According to the regulation, as of January 1, 2016, modified LCR holding companies must calculate the ratio on a monthly basis,” says Tom Bowers, CFA, Managing Director, ZMFS. “With our modified LCR enhancement, clients simply flag an instrument as a high quality liquid asset, commitment or as belonging to a specific inflow/outflow category. Once processed, outputs are systematically organized and the ratio calculated automatically, promoting efficiency and confidence in regulatory reporting.”


“This LCR enhancement, along with our DFAST solutions, demonstrates ZMFS’ commitment for our products to meet the ever-evolving federal regulations for financial institutions,” says Butch Miner, CPA, CFA, co-founder, ZMFS. “Looking ahead, we’re anticipating the launch of our net stable funding ratio enhancement later this year to provide our clients with a comprehensive, regulatory-integrated system in one complete package. And, while this modified LCR requirement is not currently mandated for our smaller clients, it is still a useful component to have available for use.”