International transport finance specialist DVB Bank AG (DVB) has deployed a liquidity solution from Fernbach-Software to enhance its risk management decision-making processes.
FERNBACH is a leading provider of Enterprise-wide Value and Risk Management and liquidity management software solutions. The company's flagship product, FlexFinance Liquidity, enables financial organisations and banks to quantify liquidity risks and predict their impact on operations.
The FERNBACH solution has been chosen by DVB located in Frankfurt/Main, Germany. The software was selected after a detailed review which concluded that FERNBACH Liquidity Management offered several benefits which competitive products could not. One of the leading reasons for the choice was the methodology underlying the FERNBACH software, which has wide approval from regulators and that ensures the implementation of a set of stringent regulations imposed by the banking supervisors.
The minimum requirements for risk management (MaRisk), the German regulations for implementing the second pillar of Basel II, stipulate that financial institutions must have a comprehensive and fully developed liquidity risk management strategy in place. FlexFinance Liquidity provides users with a thorough overall view of the entire liquidity situation as well as high data transparency down to the level of individual cash flows.
By installing the FERNBACH Data Management Suite, DVB's deal data are consolidated in one system and thus data quality and transparency for determining market and liquidity risks are considerably improved. In this way, reconciliation work for the data set is minimised. The system can be easily integrated into the infrastructure of the IT environment and generates prompt results.
All relevant operational systems of DVB including SAP Loan Management are linked into the Data Management Suite via FERNBACH's standard interface. The FlexFinance import layers are contained in the standard scope of delivery.
Martin Kinzel, Head of Controlling for DVB, described the reasons for the company's decision, "After reviewing and analysing potential providers of liquidity managementent solutions, we opted for FERNBACH's FlexFinance Liquidity as we knew it would provide us with proven and consistent methods for dealing with the liquidity risk. Other capabilities which helped us identify this as the superior solution included the flexible simulation and presentation of risks, market parameters and hypothetical deals."
Robert Fiedler, head of Strategic Product Management for FERNBACH-Software S.A., said, "FlexFinance Liquidity allows DVB to quantify potential liquidity risks on the basis of various market and balance sheet scenarios. It will also allow DVB to consistently measure its counter-balancing capacity, (its ability to compensate for potential liquidity squeezes), and compare it to the liquidity risk. At the end of the day DVB now complies with the regulatory requirements for risk management - economically."