The Bank of Papua New Guinea (BPNG) has teamed up with analysis firm FNA to create efficient intraday liquidity monitoring for investors.
Leveraging FNA’s tech stack, BPNG will form a new Payment Oversight, Compliance & Monitoring Office to gain enhanced oversight of the risk and liquidity on its RTGS payment system – part of the Kina Automated Transfer System (KATS) that includes four commercial banks.
FNA will provide BPNG with various liquidity simulations and stress tests, with the bank’s newly-launched office receiving risk alerts and notifications in real-time in case a bank faces liquidity issues.
Francis Poko, Manager of BPNG’s Monitoring & Analytics Unit, said: “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.”
Additionally, the FNA explained that network analytics are becoming more prevalent for central banks and financial institutions who want to better understand how their financial networks work in order to make adequate policy decisions.
Kimmo Soramäki, Founder & CEO of FNA, added: “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.”
