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Bank of Communications China implements Kamakura Corporation suite of solutions for Market Risk including adoption of the internal models approach (IMA) for regulatory compliance

July 17, 2014

ENP Newswire - 17 July 2014

Release date- 17062014 - Kamakura Corporation reported Thursday that it had successfully completed the implementation of a market risk project with Bank of Communications, China, one of the largest banks in China.

Established in 1908, Bank of Communication has a long history in China and is one of the first banks to have issued banknotes in modern Chinese history. It was listed on the Stock Exchanges of Hong Kong Limited and Shanghai Stock Exchange respectively in June 2005 and May 2007. Bank of Communication is amongst the top 5 leading commercial banks in China and has an extensive network of over 2,800 branches covering over 80 major cities. Apart from Hong Kong, the Bank has also established overseas branches in New York, Tokyo, Singapore and representative offices in London and Frankfurt.

The project involved the generation of all market risk related metrics, including Value at risk, sensitivity analyses, risk factor disaggregation, Potential Future Exposure (PFE), and stress testing, both on a static and on a dynamic basis. It also included the full implementation of the internal models approach (IMA) for regulatory reporting on market risk, including risk sensitivities and risk decomposition.

The project comprised software implementation, subject-matter consulting, and the creation of reports specific to the bank and Central Bank requirements for both executive management and regulatory perspectives. Dr. Clement Ooi, the Managing Director of Asia Pacific Operations for Kamakura, stated, 'Bank of Communications is a very advanced bank, always ahead of its peers in innovative risk management information process implementations, and their selection and implementation of Kamakura after a comprehensive vendor evaluation proves that organizations seek modular and integrated solutions wherever possible in order to minimize the use of disparate systems. This project has resulted in a very accurate assessment of the market risks of the bank, and the fact that these can be stress tested means that the organization is prepared for any adverse movements in market conditions.'

Suresh Sankaran, Managing Director and Global Head of Strategic Consulting, said Thursday, 'The successful implementation of the Bank of Communications market risk project is not just due to the professional approach adopted by Kamakura Corporation, but on the bank understanding the immense need for subject-matter expertise that is available with Kamakura's consulting personnel. This project has provided the bank with not just executive information on market risk metrics, but also complete regulatory compliance from a Basel II/III standpoint, and positions them well to be first adopters in the world of regulatory stress testing from a dynamic perspective in China. Kamakura Corporation has the full suite of risk management and regulatory compliance solutions including IAS39 / IFRS9, Basel II/III, Market risk, Credit risk, ALM, FTP, Liquidity Risk, Capital Management & Planning, Credit Estimation, Margin Management and Financial Accounting all through one integrated, holistic computation engine, and this certainly will be the platform upon which the bank can build its integrated risk framework.'

Mr. Liang Kui, CFA, Senior Risk Manager at Bank of Communications stated, 'our implementation of the Kamakura Market Risk module and relevant reporting structures underpinning the solution was smooth, on time, and to our satisfaction. The Kamakura consulting team is exceedingly professional and courteous, and adopted a 'no surprises' approach, which meant that both the bank and the vendor were abreast of all developments during the implementation. Furthermore, the experts were all available for use tests, and this ensured that our results were back-tested, validated, and reconciled to the satisfaction of executive management and regulators. We look forward to working closely with Kamakura Corporation to further refine our risk structures and processes in the not-too-distant future.'

Martin ZornMartin Zorn, President and COO for Kamakura Corporation, said Thursday, 'The successful implementation of the market risk project in Bank of Communications is important not just from an integrated risk management standpoint but also in the realm of regulatory compliance. The fact that there are other, similar projects not just in China but in the entire region is a great plus for Kamakura, and is testimony to the credentials of Kamakura's subject matter experts. Kamakura is well-positioned to meet the burgeoning regulatory demands imposed on financial institutions in the region and has the wherewithal to keep pace with regulation; as a matter of fact, what is currently being introduced as risk regulation has been available in Kamakura Risk Manager for the past ten years.'

To follow risk commentary by Kamakura on a daily basis, please follow Kamakura CEO Dr Donald van Deventer, Kamakura President Martin Zorn, and Kamakura's official twitter account.

About Kamakura Corporation

Founded in 1990, Honolulu-based Kamakura Corporation is a leading provider of risk management information, processing and software. Kamakura was named to the World Finance 100 by the Editor and readers of World Finance magazine in 2012. In 2010, Kamakura was the only vendor to win 2 Credit Magazine innovation awards, and it has won this award 3 years running. Kamakura Risk Manager, first sold commercially in 1993 and now in version 8.1, is the first enterprise risk management system with users focused on credit risk, asset-liability management, market risk, stress testing, liquidity risk, IFRS/IAS compliance, 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 has served more than 220 clients ranging in size from $1.5 billion to $1.6 trillion in assets. Kamakura's risk management products are currently used in 37 countries, including the United States, Canada, Germany, the Netherlands, France, Austria, Switzerland, the United Kingdom, Russia, the Ukraine, Eastern Europe, the Middle East, Africa, South America, Australia, Japan, China, Korea, India and many other countries in Asia.

Kamakura has world-wide alliances with Fiserv and SCSK Corporation making Kamakura products available in almost every major city around the globe.

For more information contact

Kamakura Corporation

2222 Kalakaua Avenue, Suite 1400, Honolulu, Hawaii 96815

Telephone: 1-808-791-9888

Facsimile: 1-808-791-9898


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Source: ENP Newswire

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