Success Case: Reporting Solution for Intraday Credit in the Financial Sector

Challenge

In the current context, liquidity shortages affect several entities operating within the financial sector. One way to mitigate this issue is by obtaining additional liquidity through access to intraday credit provided by the Eurosystem.

This scenario created the need to implement a mechanism within the organisation that would allow daily reporting to the Bank of Portugal of eligible contracts, in accordance with the rules defined by the European Central Bank (ECB) and the Bank of Portugal.

To this end, it became necessary to implement procedural mechanisms that would enable the granting of liquidity via the Bank of Portugal, secured against eligible assets - also referred to as Intraday Credit. The process to be implemented required the organisation to adapt its systems so that they could report, on a daily basis, all credit contracts that meet the conditions defined by the competent authorities.

Solution

The proposed challenge was addressed through a balanced combination of functional and technical approaches.

Functional Framework:

Integration of business processes into the implemented daily reporting system, responsible for processing and extracting new eligible credit contracts, as well as any changes to contracts previously reported, to be submitted to the Bank of Portugal.

Technical Framework:

The solution was implemented on the organisation’s Business Intelligence platform through the development of a Portal that enables the following operations:

• Parameterisation and verification of non-compliance logs

• Exclusion of eligible contracts and/or debtors

• Process configuration

• Definition and restriction of inclusion rules

• Configuration and parameterisation of eligibility rules via the portal

• Control and validation of information related to eligible contracts already sent or pending submission to the Bank of Portugal

• A highly adaptable solution (via the portal), enabling the future inclusion of new rules and products

Results Achieved

The successful completion of the project enabled:

• Access to funds from the European Central Bank (ECB) and the Bank of Portugal through Intraday Credit

• The implementation of an online control system that allows the visualisation of reported contracts and those with compliance issues

• Alerts to different areas of the organisation (business, risk, marketing/products, finance, among others) regarding the existence of inconsistent data in contracts selected for reporting, enabling informed decision-making and mitigation actions for subsequent inclusion