Completed testing with Oracle Reveleus Liquidity Risk Management on the Oracle Exadata® Database Machine X2-2 revealed extreme performance for liquidity computations, enabling financial institutions to now estimate liquidity gaps under baseline and stressed conditions and devise appropriate contingency funding strategies in minutes.
Oracle Reveleus Liquidity Risk Management running on Oracle Exadata Database Machine X2-2 calculated business-as-usual liquidity gaps for 370 million cash flows across 65 million accounts in just 69 minutes. After applying modified behavior assumptions to simulate adverse market conditions, stressed liquidity gaps were calculated in only 10 minutes.
Need for High-Performance Liquidity Calculations
Compliance with liquidity risk requirements including the Individual Liquidity Adequacy Standards of FSA, the Principles of Sound Liquidity Risk Management and Supervision of BIS and the recently released Basel III guidelines clearly illustrate that effective liquidity management is critical in avoiding future economic crises.
In today’s rapidly changing global marketplace, all types of regional economic crises can immediately impact an institution’s liquidity. Now with Oracle’s extreme performance, even the largest financial institutions globally can apply shocks to their baseline behavior assumptions, calculate stressed case liquidity gaps and develop optimal contingency funding plans within minutes.
Oracle Reveleus Liquidity Risk Management is part of the Oracle Financial Services Analytical Applications family of Risk, Finance, Compliance and Customer Insight solutions, and currently used by demanding tier-one institutions around the world.
Testing was completed using a full-rack Oracle Exadata Database Machine X2-2 running Oracle Database 11g and Oracle Real Application Clusters with the Oracle Reveleus Liquidity Risk Management and the application tier running on Oracle’s Sun SPARC Enterprise M9000 server running Oracle Solaris.
Built using industry standard hardware components plus FlashFire technology from Sun, and intelligent database and storage software from Oracle, the Oracle Exadata Database Machine X2-2 powers the largest and most important OLTP and data warehousing applications up to 10x faster than before.
“The extreme performance of Oracle Reveleus Liquidity Risk Management running on Oracle Exadata Database Machine X2-2 helps financial institutions proactively and centrally identify and assess risk under many types of market conditions, and develop effective contingency plans to optimally manage these liquidity gaps. Banks can now assess their situation and strategies on a nearly on-demand basis. Liquidity risk management becomes more than just a regulatory exercise — it becomes clear competitive advantage,” said S. Ramakrishnan, general manager and group vice president, Oracle Financial Services Analytical Applications.
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Oracle Financial Services Software Limited (referred to as “Oracle Financial Services Software”) (Reuters: ORCL.BO & ORCL.NS) is a world leader in providing products and services to the financial services industry and is a majority owned subsidiary of Oracle. Oracle (NASDAQ: ORCL) is the world’s most complete, open and integrated business software and hardware systems company. For more information, visit www.oracle.com/financialservices
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