FHLB Des Moines chooses Rockall collateral management system

Source: Rockall Technologies

Rockall Technologies, a global provider of expert collateral management solutions for the financial services industry, today announced Federal Home Loan Bank of Des Moines (FHLB Des Moines) has selected Rockall to enhance its collateral management capabilities.

FHLB Des Moines will implement Rockall's Systematic Tracking of Collateral (STOC) product to allow real-time management of multiple types of collateral pledged by its borrowing members.

In discussing the announcement, Luke Nestor, CEO, of Rockall, made note: "We are very appreciative this represents the sixth Federal Home Loan Bank that has acquired the Rockall solution. These institutions are clearly ensuring that systematic controls for collateral management are a core component of credit limit management and risk mitigation. I am excited that Rockall is uniquely positioned to serve the industry with a ready-made solution specifically developed as an operational core system for enterprise-wide collateral management. We are seeing a significant uptick in global interest for our solution as institutions are under tremendous pressure to lend the maximum allowable funds while ensuring compliance with rigorous collateral requirements that can be constantly and precisely monitored."

FHLB Des Moines selected the Rockall solution after conducting a methodical evaluation. FHLB Des Moines found the Rockall solution distinctive in its ability to actively manage a portfolio of mixed whole loan and securities collateral along with its seamless integration capability with other banking systems, securities custodians and market pricing systems. During the selection process Rockall clearly demonstrated the system's ability to automatically import data and perform complex calculations so that lending positions can be derived accurately and immediately. Also demonstrated was the system's capability to instantly detect exceptions to risk policy and straightaway generate and route alerts. Importantly the system was also shown to have built-in inquiry capabilities and prescribed best practice workflow that guides the user to an expeditious resolution of exceptions such as out-of-margin conditions. The bank also found attractive:

  • The STOC solution automates the management, tracking and valuation of liquid and whole loan collateral. Liquid collateral and loan assets are analyzed for eligibility based on predetermined business policies, valued via multiple market sources and haircuts are applied.
  • The STOC solution provides state-of-the-art functionality to allow the bank to minimize risk but at the same time provide a more efficient service to its clients. At FHLB Des Moines, this results in a more attractive all-in cost of borrowing and an enhancement to the value of FHLB membership.
  • FHLB Des Moines was impressed that, the Rockall system currently has 5,000 end users worldwide managing more than a trillion dollars of collateral. In addition Rockall has 100% client reference-ability including a robust user base in the United States.

According to Marc Johnson, Vice President and Director of Collateral Management at FHLB Des Moines, "It is important to state that our first priority was to choose a solution that was flexible enough to meet our specific institutional criteria well into the future and to ensure we can provide the best service to our members at the least possible cost. While Rockall certainly benefited from having other FHLB clients, we choose the company primarily because they proved their people were clear experts in this domain, they had a true product that stood out, they had a track record of successful delivery, and most importantly they had very impressive client references. We now look forward to joining forces with Rockall and its client community to improve the sharing of experiences and best practices to enhance efficiencies in this vital function within the industry."

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