SunGard (http://www.sungard.com) today announced that Principality Building Society, Wales' largest building society with over 420 000 members, has selected SunGard's Ambit BancWare solution for integrated credit, operational and interest rate risk. The solution will help Principality implement a complete Basel II-compliant risk management framework. (http://www.sungard.com/ambit)
Principality Building Society will use SunGard's Ambit BancWare's capital management capabilities to develop risk-sensitive approaches for managing economic capital in a time- and cost-efficient manner. Using pre-configured models, Principality will be able to assess the impact of risk decisions on capital, integrate risk data from across its retail and wholesale activity, and perform regulatory reporting for Basel II. It will also use Ambit BancWare for balance sheet management.
A key risk component in effective capital management is the integration of interest rate risk management. The Principality Building Society will use Ambit BancWare to perform static and dynamic asset liability management (ALM) modelling to help it more actively and effectively manage the interest, foreign exchange rate and liquidity risk in the banking book across its network of 50 branches.
The results will then be integrated with the figures for credit and operational risk, providing a holistic view of the risk exposure and amount of capital required to counterbalance it. In addition, Principality Building Society will also use Ambit BancWare's Fund Transfer Pricing (FTP) component to help provide enhanced profitability analysis.
Julian Bill, head of group finance at Principality Building Society, said: "We were seeking to develop our existing balance sheet risk management, and thus ensure we were making best use of our capital within the Basel II framework. We also needed to better support our day-to-day hedging and strategic decision-making processes. SunGard's Ambit BancWare has given us exactly the solution we wanted, as well as the support of an experienced software vendor."
Andreas Hug, vice-president of risk and compliance solutions for SunGard's banks and corporations business, commented: "Ambit BancWare's open platform, coupled with straightforward customisation capabilities, means that Principality will have a risk infrastructure in place with a low cost of ownership and the ability to adapt and evolve with changing internal and external requirements."
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