Liquidity Risk Management is a major compliance feature mandated by Basel ll, the 3d installment of the Basel Accords in response to the 2007-2008 global financial crisis. It is intended to increase bank liquidity while strengthening its capital requirement.
Ultipa offers end-to-end LRM solutions by leveraging Ultipa Server's superior graph computing power and Ultipa KG's 3D visualization, it's a true one-of-a-kind killer app for banks to master with their assets and liabilities meanwhile satisfying domestic and international regulatory needs without hassles. Factors like LCR(Liquidity Coverage Ratio) are managed and computed in real-time in a fully explainable white-box fashion, with unprecedented features like real-time simulation, backtracking, quantification (i.e., top contributors to LCR), and high visualization.
A Screenshot of The Ultpa LCR System
LCR = HQLA (High-Quality Liquid Asset Amount) / Total Net Cash Flow Amount
The LCR system by Ultipa supports various kinds of data sources:
- Data Warehouses
- Data Lakes
- Trillion Scale
Business features of LCR system facilitated with Ultipa deep graph computing include but are not limited to below:
- Real-time LCR
- Discount Rules
- Backtracking / Simulation
- Customer Contribution
Superior user experience augmented by LCR system's high visualization performance is brought with functions as:
- 3D Transmitting Paths
- Graphical Simulation
- Trend Monitoring
- Full-text Visual Search
Overall features and performance of the liquidity risk operational flow of LCR system:
- 80+ Tables
- 1,000s of Fields
- Trillions of Data
- Daily Updates
- Entire Bank Coverage
- Cross-BU Collaboration
Liquidity Risk Operational Flow
A recommended LRM HTAP Cluster Setup:
| Cluster Size | >= 4 Instances (in each cluster) |
| Cluster Deployment | >= 2 Clusters for Active-Active Deployment |
| (Per Instance Configuration:) | |
| Compute | 232 vCPU |
| Memory | >= 384GB |
| Disk | >= 2TB SSD |
| Network | 10Gbps |
| Host OS | Centos 7.x, Ubuntu 18,x or Redhat 7.x |
| Continue Support | Docker 19.x |
| Virtualization Support | Various Environments Differ |
To demonstrate the difference of LCR products by traditional databases and graph databases in the market, here we list a comparison between an Oracle LRM Solution and Ultipa LRM offerings:
| Oracle LRM Solutions | Ultipa LRM Offerings |
| LCR: T+1 ETL (3.5 Hours) | LCR calculations: 10 seconds |
| No Visualization | 3D Visualization |
| No Backtracking (to customers) | Real-time backtracking |
| No Simulation | Real-time simulation |
| Oracle DB Cluster | Ultipa cluster (128-256 vCPU) |
| Blackbox solution | White-box solution |
| Excel Centric Routine work | Easy to consume GUI & maintain |
| High Maintenance Cost | Many scenarios in the pipeline |
LCR IT Architecture
Have a glance at the interfaces of Ultipa LCR system and feel it for yourself:
LCR Global Visualization & Graph View
LCR Realtime Backtracking
Aggregation by Centers or Industries