MORS Software, a provider of real-time treasury and risk management for banks, 2012 Liquidity Risk Management survey, conducted between 4 May and 15 July 2012, covered sixty-one banking professionals from 26 countries across the UK, Continental Europe, Asia, Middle East and the US participated.

The survey revealed that interest in intra-day liquidity risk monitoring has increased steadily over the past 12 months. Continuously challenging market conditions are forcing banks to optimise their use of liquidity and capital, and, at the same time banks are feeling pressure to achieve regulatory compliance.

Specific findings were:

• the majority of banks now prioritise intra-day liquidity risk monitoring; and over two-thirds of the banks are already monitoring liquidity risk in intra-day
• data gathering from many different sources remains a major challenge for most banks: on average, banks collect liquidity risk monitoring data from three different systems
• most banks are still unable to monitor the entire bank intra-day: only one third of banks are able to monitor consolidated bank-level risk figures intra-day, which is the standard targeted by regulators
• intra-day follow-up of nostro and central bank balances and the ability to monitor liquidity risk figures intra-day are prioritised areas within liquidity risk monitoring activities intra-day liquidity risk monitoring
• projects are at the same time far from complete for most banks: only 13% of banks have finalised their intra-day liquidity risk monitoring project, while a greater number of banks have now determined their plan compared to last year.

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Basel II and III has always meant that banks will have to charge for intra-day overdrafts eventually. That day is getting nearer. Explicit charging - next year? in 2-3 years?