The integrated asset liabilities management system suite is part of Bank Islam's journey towards digitalisation.
Adi Asri Baharom, the bank's Head of Treasury said, "The selection of an asset and liabilities management system ensures that our regulatory submissions are accurate and consistent. During the implementation, the consultants demonstrated superior subject-matter expertise and made sure the bank was well-equipped and trained in using the system to best effect."
Chee Hian Tan, Kamakura's VP and Director of Professional Services for Asia-Pacific, said, "Kamakura's powerful simulation capabilities allow users to create scenarios in a sandbox environment, where they can easily assess impacts on various risk metrics. Kamakura's integrated solution has allowed the bank to run new business growth target simulations to determine future NII and liquidity impacts, as well as generating forward-looking FTP positions. The bank also uses the LCR result to factor in HQLA cost in their fund-transfer pricing process. Such integrated usage of risk metrics is only possible with a fully integrated solution like Kamakura's."
NII stands for net interest income, while FTP refers to funds transfer pricing, and LCR to liquidity coverage ratio. HQLA is an acronym for high-quality liquid assets.
Wilson Yap, Kamakura's Asia-Pacific Senior Vice President and Head of Professional Services, said, "Bank Islam now has an integrated risk framework with a single database and platform that generates liquidity, interest rate risk metrics, and FTP results at the transactional level.
"Each simulation model or transfer pricing methodology is backed by reconciliation templates that not only help users validate the model but ensure that the bank meets all audit compliance rules. The fact that Bank Islam selected Kamakura after a comprehensive vendor evaluation proves that modular and integrated solutions offer distinct advantages over disparate systems."
Dr Clement Ooi, Kamakura's President, Asia-Pacific Operations said, "We are happy that Bank Islam is now able to manage its risk by running simulation in multiple scenarios. The bank has been able to incorporate the metrics into both its short-term and long-term planning strategies.
"Kamakura's unique offerings of a complete ERM solution are essential for the bank to actively manage cashflow positions and accurately assess the margins of internal business units. Kamakura's solution is user-friendly and flexible in its configuration. The user interface was designed to allow users to configure simulations intuitively on a day-to-day basis." ERM stands for enterprise risk management.
Kamakura Corporation offers a full suite of risk management and regulatory compliance solutions, including:
- IAS39 / IFRS9
- Basel II/III
- Market risk
- CVA/DVA. CVA is a credit adjustment for a derivative that is an asset, while DVA i s a credit adjustment for a derivative that is a liability.
- The Fundamental Review of the Trading Book/Standard Initial Margin Model (FRTB/SIMM)
- Credit risk
- Asset and liability management (ALM)
- FTP
- Liquidity risk
- Capital management and planning
- Credit estimation
- Margin management
- Financial accounting