Taiwan Business Bank Adopts Kamakura Solutions for Asset and Liability Management,
Funds Transfer Pricing, and Basel III Liquidity Management
Singapore, September 21, 2018: Kamakura Corporation announced today that Taiwan Business Bank (TBB) has gone live with Kamakura’s solutions for asset-liability management (ALM), funds transfer pricing (FTP), and Basel III liquidity management (LCR and NSFR). The Bank selected Kamakura’s system after a comprehensive evaluation of available options and is using the system both at home and for operations in Australia, China, the U.S., and Japan.
The Taiwan-based commercial bank, founded in the 1970s, was the first bank established by the government to provide financing assistance and guidance to small and medium-sized enterprises. Today, its lines of businesses include corporate finance (corporate loans, import-and-export loans, and financing services); personal finance (personal loans, credit cards, wealth management, trust services, and securities trading); and financial operations (foreign exchange trading, short-term transaction instruments, and stock, bond, and fund investments), as well as deposits, network banking, telephone banking, and other services.
The bank ranks among the top five percent for corporate governance, according to an assessment by the Taiwan Stock Exchange. It is the only government-owned bank that the Securities and Futures Institute has rated “A++” for seven consecutive years in the category of transparency and disclosure.
Twelve of TBB’s project loans rank first in nationwide market share. In addition, the bank has won six national awards: four from the Ministry of Economic Affairs for lending to small to medium-sized enterprises and two from the Financial Supervisory Commission for lending to small to medium-sized businesses and to organizations in the cultural and creative sphere
Commenting on the announcement, TBB said, “The selection of Kamakura’s suite of products was based on the company’s professional approach and the expertise demonstrated by its consulting staff. With Kamakura’s solutions, TBB can now do daily interest risk and liquidity risk analysis and simulation on Kamakura’s enhanced data management platform with no need for IT support. ¬ In addition, the software has greatly simplified our reporting process. Previously, our four overseas branches each had to prepare separate monthly regulatory and management reports, but thanks to Kamakura, this can be done on a consolidated basis. What makes Kamakura’s solution unique and valuable to us is the variety of features it offers, including a great ALM system and advanced FTP metrics, including liquidity premiums and discounts, customer optionality, core and non-core balances, locked margins across tenors, and transfer pricing adjustments based on user-defined parameters. In addition, the software makes it much simpler for us to comply with Basel III’s complex LCR and NSFR liquidity guidelines.”
Dr. Clement Ooi, Executive Vice President and Managing Director of Asia-Pacific Operations for Kamakura, said, “TBB has selected an integrated, holistic computation engine that enables it to be fully aware of its business unit, product, and customer profitability, as well as its liquidity and sensitive positions. It can now generate cash flow information from the transaction level right up to the enterprise level across all its global subsidiaries. Results of forecasted simulations and transfer pricing can also be used in net income simulation and interest rate stress testing. In addition, the solution helps TBB to be fully compliant with regulatory and executive reporting requirements.
“Kamakura is the global leader in integrated risk management systems, with customers in over 47 countries. We are uniquely positioned to provide the support clients need to optimize the value of our solutions both today and in the future. It was heartening to see TBB choose Kamakura and successfully implement our products.”
Frances Cheng, Kamakura’s Vice President and Director of Professional Services, said, “Kamakura solutions give TBB a coherent approach to strategic analysis, with one single database and common assumptions shared across modules. The one-time data extraction and reconciliation significantly reduces the time the bank spends on data consolidation and simplifies its reporting, improving operational efficiency by more than 80 percent.”
Martin Zorn, President and COO for Kamakura Corporation, said, “TBB has chosen a truly integrated enterprise risk management solution that generates accurate risk metrics backed by over 25 years of research and product development. Kamakura software is user-friendly and flexible to configure and install. It was designed with day-to-day tasks in mind and allows users to set up and run scenarios smoothly and intuitively.
About Kamakura Corporation
Founded in 1990, Honolulu-based Kamakura Corporation is a leading provider of risk management information, processing, and software. Kamakura was recognized as a category leader in the Chartis Report, Technology Solutions for Credit Risk 2.0 2018. Kamakura was named to the World Finance 100 by the editor and readers of World Finance magazine in 2017, 2016 and 2012. In 2010, Kamakura was the only vendor to win two Credit Magazine innovation awards. Kamakura Risk Manager, first sold commercially in 1993 and now in version 10.0.3, is the first enterprise risk management system for users focused on credit risk including IFRS 9 and CECL, asset and liability management, IRRBB, market risk, FRTB, CVA/DVA, SIMM, stress testing, liquidity risk, counterparty credit risk, and capital allocation from a single software solution. The KRIS public firm default service was launched in 2002. The KRIS sovereign default service, the world’s first, was launched in 2008, and the KRIS non-public firm default service was offered beginning in 2011. Kamakura added its U.S. Bank default probability service in 2014.
Kamakura has served more than 330 clients with assets ranging in size from $1.5 billion to $3.0 trillion. Its risk management products are currently used in 47 countries, including the United States, Canada, Germany, the Netherlands, France, Austria, Switzerland, the United Kingdom, Russia, Ukraine, South Africa, Australia, China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, Singapore, Sri Lanka, Taiwan, Thailand, Vietnam, and many other countries in Asia, Europe and the Middle East.
To follow risk commentary by Kamakura on a daily basis, please follow:
Kamakura CEO Dr. Donald van Deventer (www.twitter.com/dvandeventer)
Kamakura President Martin Zorn (www.twitter.com/riskmgrhi)
Kamakura’s official twitter account (www.twitter.com/KamakuraCo).
For more information, please contact:
2222 Kalakaua Avenue, Suite 1400, Honolulu, Hawaii 96815
Web site: www.kamakuraco.com