China Merchants Bank live with Misys Opics Risk

China Merchants Bank live with Misys Opics Risk

China Merchants Bank (CMB), the largest credit card issuing bank in China, has rolled out risk management technology from Misys at its head office in Shenzen.

The bank is using the Misys Opics Risk product to process and analyse profit and loss and interest rate risk exposure in its front, middle and back-office operations.

CMB is using the software to run daily stress tests, calculate P&L, manage interest rate risk and calculate riskmetrics VaR across a diverse portfolio, including OTC options, swaps, foreign exchange and foreign investment.

The technology has been integrated with the Bloomberg, Reuters and Bank Nostro systems in the bank as well as with CMB's own retail foreign exchange application.

UK-based Misys says its revenue in China has grown by over 40% during the 2005/06 financial year and the steady rise in demand for its products has resulted in the doubling in size of its local treasury and capital markets team.

Murray Sargant, managing director, treasury and capital markets Asia, Misys Banking Systems, says since deregulation, the derivatives market in China has evolved rapidly with demand growing for products.

"As the local market becomes more and more attractive to investors, we have seen a sharp rise in demand for our specialist treasury and capital markets solutions," says Sargant.

"There is huge growth potential in areas such as FX, credit derivatives and structured products trading," he adds.

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