China Merchants Bank (CMB), one of China's leading financial institutions, has gone live with an advanced market risk and portfolio management solution from Misys (FTSE: MSY.L), the global application software and services company.
Implementing Misys Opics Risk Plus at its head office in Shenzhen will enhance risk management, enabling the bank to identify further growth markets.
CMB became one of the first banks in China to install a first generation Misys Opics solution in 2004. As the risk management mandate has continued to evolve, however, CMB needed a more complex risk management solution, and chose to leverage its strategic relationship with Misys.
Misys Opics Risk Plus is a complete risk management tool which will allow CMB to create historical simulation and set a complex range of risk limits to cover all trade situations. The solution will help the bank reduce treasury costs and increase returns through improved accuracy of market valuations within the bank's portfolio. It will also help CMB's users to better manage cash flow analysis, interest rate sensitivity and risk value exposure on foreign exchange, money market, securities and derivatives transactions, enabling better risk control.
Dr. Liu Xiao-La, Assistant General Manager & Senior Vice President, Treasury, China Merchants Bank comments: "With continued growth in the markets, accurately managing risk, both in terms of modelling and risk limit management is essential. This solution enables us to process a much wider range of instruments and the increased flexibility will help us evaluate risk in real-time. We are growing with the market to become more valuable to our customers. This is the first step in a multi-phase project with further applications to be added in the new year including Monte Carlo VaR and return attribution that will allow us to cover even more complex trades as the market advances."
Geoffrey Hart, Misys Opics Risk Manager - Asia Pacific, added, "The Chinese banking industry continues to show unprecedented expansion, and robust scalable software is vital in helping the country's leading banks create new revenue opportunities and provide new products for customers. We implemented Misys Opics Risk Plus quickly and efficiently at China Merchants Bank, enabling them to drive real results and keep ahead of their competition."
In the growing Asian financial markets, many banks are recognising the need for increasingly sophisticated risk management systems. Earlier this month, Misys installed Opics Risk Plus in three weeks at another Chinese bank, where speed of implementation was vital. A major bank in the Philippines also became the first in that country to go live with Misys Opics Risk Plus, leveraging the flexibility of the system to establish a highly tailored risk analysis support tool for risk management solutions in their front office.