FRSGlobal to deliver replication portfolio modelling for retail bank deposits

Source: FRSGlobal

FRSGlobal, part of Wolters Kluwer Financial Services, the leading worldwide provider of compliance and risk management solutions for the financial services industry, today announced it will be providing advanced replication portfolio modelling techniques within its solutions in Q1 2011.

Sight and saving deposits within retail banks have a non-maturity profile (i.e. the customer can withdraw the money at any point in time). In order to capture the financial risk of such positions, replication portfolio techniques are applied based on empirical evidence of the firms' data or sometimes on peer group data evidence. The replication portfolios offered by FRSGlobal will allow treasury departments to manage the financial risk, namely the interest rate risk of these types of deposits, which are a significant funding source for retail banks.

This advanced offering is based on the industry experience that FRSGlobal has built up over the last decade and will allow banks to integrate replication portfolio models that are built within the solution with easy to use configurations. Users will benefit from FRSGlobal's business expertise in risk management and from its powerful risk models as well as the 'out-of-the-box', pre-defined models that are rich in content and able to meet real business demands.

Thomas Brouwer, Head of product management, FRSGlobal, commented: "We are proud to announce that our solutions incorporate advanced techniques that will enable a broad variety of replication model parameterisation. This will allow in-built creation of replication portfolios as well as the in-built calculation of value adjustments over time - especially including replication portfolio parameter adjustments. This new functionality within our powerful risk solutions will ease the workload of treasury departments and support them in their predictive analysis along its business strategies and market scenarios."

FRSGlobal's RiskPro solution covers a broad scope and depth of financial analysis ensuring consistency of results, and reduction in the costs of analysis which includes:
• Easy-to-use and highly flexible modular software platform enable small to large organisations to satisfy the internal and external analysis requirements in financial risk analysis;
• Extensive financial product coverage - from saving accounts, complex loans and insurance instruments to exotic options and structured products;
• Experienced and talented implementation and support resources - providing quality services and complete knowledge-transfer to help ensure effective solution implementation, use and support;
• This covers worldwide accessibility and global delivery capability through local presence and international teams.

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