Financial Architects (FinArch), the market leading vendor for integrated Finance and Risk software solutions, is pleased to announce that Krung Thai Bank has selected its flagship Financial Studio to address Bank of Thailand (BOT) IAS 39 requirements.
Krung Thai Bank Public Company Limited ("Krung Thai Bank") decided to implement the packaged IFRS solution to achieve timely compliance with Bank of Thailand (BOT) IAS 39 date lines. "IAS 39: Financial Instruments: Recognition and Measurement" is a measure of instrument by the International Accounting Standards Board (IASB) which sets out requirements and rules for recognition, de-recognition (removal) and measurement of all monetary assets and liabilities, derivatives and equity investments. The guideline improves the transparency and provides a buffer against impaired assets, significantly strengthening the banking sector.
Krung Thai Bank procured FinArch's proven IAS/IFRS packaged software solution after an intensive vendor selection process. The bank, together with FinArch and its Thai Distributor, YIP IN TSOI is currently in the process of project implementation.
FinArch's IAS/IFRS solution, part of the company's flagship Financial Studio, addresses BOT IAS39 requirements by taking in all financial transactions, generating cash flows, calculating the IFRS valuation, generating the postings, and feeding the resulting entries back to the bank's main general ledger. As such, FinArch's solution meets the bank's challenges by providing an integrated "event to disclosure" solution, from transaction to BOT IAS 39 regulatory report. Automation, reduction of manual intervention and reconciliations, faster closing effort, and a solid audit trail are some of the solution's key features. The implementation of the system is conducted jointly by FinArch and its distributor in Thailand, YIP IN TSOI Company Limited.
Khun Danai Wangsiri, Vice President of FSI at YIP IN TSOI, states: "We are privileged to have the opportunity to be FinArch's distributor in Thailand. We have many partnerships with foreign vendors and none is more committed than FinArch. This first successful assignment in Thailand demonstrates the synergy of leveraging the strengths of both organisations to better serve the interest of Krung Thai Bank."
"Krung Thai Bank, the second financial institution by total asset size in Thailand, will be the leader and example for the entire banking community in Thailand," Jeff Tan, Vice President for APAC at FinArch, comments. "Preparing for BOT IAS 39/IFRS is the wisest strategic decision not only for regulatory purposes but for the bank's internal purposes: it increases transparency and maximises returns on their capitalization." He adds: "In the coming years, financial institutions will face heightened pressure from upcoming new regulations, like IFRS9, ALM, Liquidity Risk, and Basel III. With a parameterised solution like Financial Studio, Krung Thai Bank gets a head start as new deadlines approach."