｜WHITE PAPER
Managing Intraday Liquidity Risk
Confidently and efficiently address the European Central Banks’ intraday liquidity risk management principles
2023 events marked a watershed moment for liquidity risk management, revealing vulnerabilities no institution can ignore. In an increasingly interconnected and time-sensitive market, there’s now a sharp focus on the risks posed by gaps in intraday liquidity. In this white paper we will examine the sound practices for managing intraday liquidity risk identified by the European Central Bank (ECB) in November 2024, how navigating intraday liquidity risks – especially against a backdrop of shorter settlement cycles – often demands more than legacy systems can provide and how Baton’s advanced technology could support your firm.
The Challenges and Constraints Introduced by Legacy Systems and Processes
Many financial institutions face significant hurdles in managing intraday liquidity risk due to:
- Fragmented data generated by siloed systems and legacy processes
- Delays in consolidating critical real-time liquidity data produced by different business silos
- Difficulty accurately predicting inbound payment timings
- Insufficient controls to release automated payments in a prioritised manner
These limitations create gaps in visibility, foresight and control that could jeopardise the institution’s ability to meet time-sensitive obligations and throughput commitments during times of market stress.
Mitigating Intraday Liquidity Risk with Baton’s Advanced Technology
Baton Systems’ interoperable and modular intraday liquidity management technology bridges business silos, providing financial institutions with the real-time, enterprise-wide visibility, granular historical insight, accurate foresight, automated and prioritised payment orchestration, and extensive stress testing capabilities required to proactively manage intraday liquidity risk.
Unlock the Future of Intraday Liquidity Risk Management
Download this white paper to explore how the tools and capabilities offered by Baton’s next-generation technology directly align with the ECB’s seven intraday liquidity risk management sound practices – enabling financial institutions to navigate intraday liquidity risks with precision and confidence. This streamlined approach allows institutions under European Banking Supervision to address multiple aspects of each of the ECB’s intraday liquidity risk management principles using a single, low-code, cloud-based solution – simplifying how firms can meet these principles while enhancing risk management efficiency across their entire organisation.
Discover how your institution can meet the ECB’s intraday liquidity risk management principles with confidence and ease. Your path to precision, efficiency, and increased resilience starts here.
