China Construction Bank (CCB) is implementing risk technology from Canadian vendor Algorithmics to measure and manage international credit exposure and credit limits.
CCB is implementing the vendor's Algo Credit Exposure and Algo Credit Limits products to assist in measuring and managing its counterparty credit risk and to view and manage consolidated risk exposure across the enterprise.
The tools also enable the bank to 'drill down' to view exposure to a single customer or a particular industry, product or geographic market, says Algorithmics.
"We believe we can use our capital most effectively by using the latest technology to mitigate our exposure to risk," says Jiang Guo-Yun, international department director, CCB. "It will give us the confidence to grow our business volume and increase profitability knowing we have a well-managed risk control environment."
Michael Zerbs, president and COO at Algorithmics, says the firm is seeing a great deal of interest in risk management in the Chinese market and the systems it is implementing "are likely to be closely watched by all the Chinese banks that are considering moving into the process of managing their international credit exposures and limits".