XARES – LIABILITY MANAGEMENT

The system supports credits and loans, guarantees, security issue and purchase as well as derivatives such as IRSs, swaps or forwards. Like Andvari, our commission management system, Xares is a web-based system available from the browser and optimised for mobile devices.

Front / Mid Office

Xares 2.0 supports the following products: loans, credit lines and drawdowns, deposits, security deposits, bonds (both own and traded on secondary market), securities, guarantees, FX swap and forward, IRS. All contracts may be either introduced to the system manually or imported. With Xares, you can define any interest periods, or principal sum, fee and commission payment deadlines for each product, as well as manage such data with much flexibility. For instance, a contract may be introduced where in the first interest period a fixed interest rate applies while the other periods are subject to a reference interest rate increased by a margin. On the basis of various data provided, the system generates a picture of the daily interest accrued as well as of the flows, taking into account any amendments to the contracts (such as modifications of the principal sum or interest rate). In the online mode, all postings generated by the system can be seen, and at the end of each day Xares generates a file with postings to be imported to the system that contains the general ledger at any aggregating level. The basic way of posting consists in posting the both the accrued and matured interest as well as capital flows at the level of each contract while, depending on particular requirements, the postings may be aggregated e.g. to product level. Xares also supports a currency exchange and reference interest rate chart. The values of both exchange and interest rates can be introduced manually or imported from external sources such as Reuters or Bloomberg.

Additionally, with Xares you can supervise the balance of an NBP account and the compulsory minimum reserve. The system allows you to manage reserves in the following way:

• Memorising the declared compulsory minimum reserve amount
• Maintaining the compulsory minimum reserve for every day
• Calculating the level required to maintain the compulsory minimum reserve (estimation based on average values)
• Comparison to the current account balance
• Calculation of any balance surplus/shortage vs. the declared compulsory minimum reserve (required to calculate the supervisory metrics for liquidity)

Back Office

Supervision over liquidity metrics and forecasting are an additional Xares module.

Liquidity metrics

With Xares, you can review the current and historical supervisory liquidity metrics. This module allows you to import aggregate data from the general ledger or other systems, combine it with the data processed in Xares and calculate the metrics. Any number of data sources may be defined, with five aggregating levels for each of them plus as label (DT/CR). With such differentiation, mapping for the purposes of liquidity management may be defined in virtually any way. For each component (A1-A5 and B1-B5) of the liquidity metrics, the user defines mapping for the imported values. Such mapping consists in defining filters that unambiguously indicate the required set of accounts or products. Results for the filter so defined can be seen immediately. For each mapping, (up to three) weights are added within each component liquidity metric along with the label with which the result will be included in the respective component (absolute value, label as in the source, label reversed as compared to the source). Each mapping is stamped with an expiration date, which in practice means that the liquidity metric values may be recalculated for any moment in time with the mapping effective at that moment. Once the mapping and data integration are complete, the system calculates the liquidity metric components as visualised on the Liquidity screen. A preview showing which values from which account sets have been considered in the metric recalculation is also available. On clicking the specified item A1 – B5, a list of the mapped items is displayed (with all the mapping parameters) together with the balance for each item. Based on the components, the M1-M4 liquidity metrics are calculated. Checksums C are calculated in a similar way. After the relevant mapping, the above checksums are calculated. One of them is a penalty for exceeding the forecast stable fixed assets. Find out more about this module below. The user may also define own checksums and describe them as necessary. Once a checksum is defined, items to be included in it shall be mapped. Once the data is provided, Xares will also calculate those checksums.

Forecasting

Forecasting of stable assets is another Back Office functionality. To specify the value of external stable assets, the user shall introduce the component values to Xares, based on which the system calculates the minimum external stable assets that will be maintained every business day during the next 6 and 3 calendar months, separately for each category of liabilities. The final forecast has to be approved by a duly authorised person. Adjustments can be made to those forecasts that have already been introduced. On the basis of the M3 forecasts introduced by the user for each category of liabilities and of the adjustments made by the user to the 3M forecasts, Xares automatically indicates per each reporting day the minimum value of external assets that will be maintained each business day during the next 30 calendar days. Xares accepts the above values based on the current data introduced by the user in a way that the minimum amount of external stable assets to be maintained every business day during the next 30 days is equal to the minimum value of external stable assets specified for the first of the following 3 months. For example, if a 3-month forecast for the first month in a year shows value 3 for January and 4 for February while the 3-month forecast for the second month of the year displays the value of 5 in February and 8 for March, then all the 30-day forecasts made in January display 3, and 5 in February.

The value of external stable assets for the respective category of liabilities shall be established according to relevant models. The total value of external stable assets is calculated as the sum of the external stable asset amounts specified for each liability category. Xares monitors every day whether on the given reporting day the actual value of external assets considered to be stable is lower than the maximum value of the declared stable assets from the last 30 days. Xares memorises the above values. Xares automatically calculates the amount of the "penalty" equal to the difference x3 if the difference between the external stable assets and the declared amount is greater than zero, separately for each category of liabilities, as well as the total value corresponding to the sum of all the differences for particular categories of liabilities, and increases the value of non-stable external assets.

The user can also preview the results of the introduced data and the Xares calculation values regarding i.a. the stable part, the monthly values introduced to the 3M and 6M forecasts, and the minimum value of the external stable assets for 3 and 6 months. The above values are available as adjustable diagrams (the period displayed can be adjusted, and particular values shown on the diagram may be excluded or included).

Find out more about the practical features of this module by trying out our demo version available at xares.zamiastowo.pl, “Forecasts” tile. Please select the forecast for the respective period in the screen displayed or preview the values in Diagrams.

The system is built in the MVC technology and based on Microsoft SQL Server. Software required for correct operation of the system: MS SQL Server 2008 R2 or 2012, IIS 7.5 or 8.0. The user interface is available from the internet browser. The Xares interface is fully responsive, working in browsers on both desktop and mobile devices (smartphones, tablets)..