23 August 2010

Liquidity Stress Testing

CD Financial Technology Ltd (CDFT) has implemented a full scale Liquidity Stress Testing solution (analyses and reporting) for an AAA-rated customer. The customer presented the case (including scenario building) and reporting templates to their national regulator in June 2010 and the bank received very positive feedback both for the test itself and for the comprehensiveness of the scenarios.

The solution builds on path Monte Carlo simulation capabilities of the R/V Platform developed by CDFT. In the analyses all key factors driving revenues and costs of lending, funding and investment activities were simulated over a long planning horizon. The impacts on P/L and the capital ratios were established and conditions that could potentially lead to a requirement for new capital were identified and ranked on a relative scale (of probability).

For more detailed information please contact:

Sales & Marketing Director Pekka Luoma, tel +44(0)77988 33158
Managing Director Urho Lempinen, tel +358(0)9612 3322
Email: sales@cdgroup.fi.