Following the Supervisory Review and Evaluation Process (SREP), the bank received a letter from the Banque Centrale du Luxembourg (BCL) highlighting a number of findings and recommendations concerning its liquidity risk management framework. The bank was asked to address these recommendations as part of its submission of the 2021 Internal Liquidity Adequacy Assessment Process (ILAAP).
The bank’s Treasury team, who is responsible for the ILAAP, required assistance with enhancing its liquidity management framework and support in preparing its 2021 ILAAP report while implementing the SREP letter recommendations. The primary goals were the following:
Avantage Reply had to 1) update last year’s ILAAP report from start to end, and 2) address the recommendations required by the BCL. The first objective was impeded by the lack of documentation and the previous person responsible for this report. This required extra time to understand the bank’s specificities. Secondly, most of the solutions had to be developed and approved prior to the update of the ILAAP, which required a practical and efficient working plan.
Avantage Reply provided one full-time resource who led the project along with coordination of the ILAAP development and drafting of the report. The senior consultant provided the necessary technical and industry best market practices by developing custom-made solutions to address the comments from BCL. The final delivery consisted of: