Bloomberg aids Rabobank’s Basel III compliance

Rabobank is the latest bank to adopt Bloomberg’s high quality liquid assets (HQLA) solution to assist with Basel III compliance requirements.

Bloomberg’s HQLA solution allows Rabobank to monitor its liquidity buffer and ensure it fulfils Basel III’s liquidity coverage ratio (LCR) requirement, which will be enacted on 1 October.

The LCR requires banks operating in Europe to hold an adequate number of assets that can be converted easily and immediately into cash in private markets with no or little loss of value, even in stressed market conditions.

Verifying the eligibility of HGLA requires global market expertise and a large amount of descriptive data, which needs to be organised into logical rule sets accounting for each jurisdiction’s HQLA definitions.

In addition, the data sets need to be tested on a daily basis to reflect security level changes.

The LCR will be progressively implemented in Europe between 2015 and 2018 under the Capital Requirements Regulation.

Allan Bolk, Rabobank’s head of securities finance and repo in Europe, said: “The tool will allow us to track and report our liquidity buffer efficiently on a consistent and daily basis and will enable our treasury to manage and optimise its investment decisions with real-time classifications.”

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