Thomson Reuters today announced the launch of a risk management system specifically tailored for Islamic banking.
Kondor+ Suite for Islamic Banking is a real time trade and risk management solution, which will provide full front-to-back and cross-asset coverage for Islamic banks as well as Islamic windows in conventional banks.
The Islamic finance industry has grown to approximately US$1 trillion. Recent events have shown that whilst Islamic banks have avoided the complex instruments that were central of the credit crisis, they have still been susceptible to the downturn. Non-performing loans and investment impairments in the region have mounted in the last year, resulting in a call from the market for systems that foster transparency. The new Kondor+ Suite for Islamic Banking is designed in accordance with Shari'ah rules under which financing and investment techniques are based on profits from trade rather than the paying and receiving of interest.
Andrew White, Global Head of Risk Management, Thomson Reuters, said: "The Islamic finance industry continues to grow in both size and diversity of financial instruments. Kondor+ Suite for Islamic Banking is a modern software solution that can be customised to a client's needs to meet the practices and regulations that vary by region. This launch demonstrates Thomson Reuters commitment to providing financial institutions with the specialist tools which they require to return benefits for their clients."
Instrument coverage in Kondor+ Suite for Islamic Banking, includes commodity and reverse Murabaha; Wakala; deposit exchange; Islamic spot and forwards; point based borrowing and lending; Islamic currency options; profit rate swap; Sukuk.
"From the trading risk perspective, Islamic finance operates in the same macro, tax, regulatory and legal environment as conventional financial services and has the same vulnerabilities to liquidity and confidence crises. As this community expands, niche or add-on systems no longer provide the kind of breadth and depth of functionality needed by financial institutions. Kondor+ Suite for Islamic Banking meets this market requirement," added White.
Thomson Reuters, which has been active in the Middle East, Africa and South East Asia since 1865, has strong Islamic finance assets covering leading content, news, analytics and trading capabilities.