BPNG and FNA join forces to enhance liquidity monitoring

BPNG and FNA join forces to enhance liquidity monitoring

The Bank of Papua New Guinea (BPNG), the country’s central bank, has teamed up with FNA, a global leader in advanced network analytics and simulation.

The alliance aims to enhance intraday liquidity monitoring and foster a deeper comprehension of systemic risk. This partnership is part of an effort by BPNG’s newly established Payment Oversight, Compliance & Monitoring Office to utilise FNA’s technology and improve its understanding of liquidity and risk within its RTGS payment system.

BPNG operates the country’s payment system, a part of the Kina Automated Transfer System (KATS), which encompasses four commercial banks across the region as participant members. FNA, on the other hand, excels in network analytics, providing cutting-edge technology to identify hidden connections and anomalies in complex datasets. The company’s software, part of its Suptech solutions suite for central banks, is trusted by the largest central banks, government authorities, and commercial banks worldwide.

FNA’s solution will enable BPNG to run intraday liquidity simulations and stress tests, and measure the impact of stress events on its member banks and payment system. Integrated into the Bank’s own internal reporting, the Payment Oversight, Compliance & Monitoring Office will receive daily updates on systemic risk level, along with additional alerts should a bank encounter liquidity issues. This paves the way for BPNG to efficiently monitor and manage risk in real-time.

Network analytics and simulation technology have quickly become indispensable elements of effective, technology-led supervisory regimes. Combined with Suptech initiatives, network analytics allows central banks and financial institutions to understand their financial network’s operation, proving invaluable for both micro and macro policy decisions.

FNA Founder & CEO, Kimmo Soramäki said, “We are thrilled to partner with the Bank of Papua New Guinea to enhance their monitoring capabilities and strengthen their understanding of liquidity and systemic risk. This collaboration exemplifies the growing importance of network analytics and simulation technology, equipping central banks and financial institutions with valuable insights for informed policy decisions.”

Francis Poko, manager, monitoring & analytics unit, payment system oversight & compliance department, Bank of Papua New Guinea added, “We are very proud to work with FNA, a global leader in Suptech & network analytics, to understand systemic risk and liquidity usage within BPNG’s payment system. The simulation and stress-testing technology provided by FNA has helped our team to have a full and better visibility of the commercial banks’ usage of intraday liquidity. We look forward to continuing our collaboration with FNA.”

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