SNS Bank, the 4th largest Dutch bank, will upgrade its treasury and risk infrastructure with SunGard to create a centralized operational framework for credit and market risk management, including initial margin, potential future exposure (PFE) and XVA.
An integral part of its strategy to modernize risk capabilities in these areas, this will help SNS better adopt market standards, particularly around the principles imposed by Basel and regulatory bodies.
The entire Basel pillar I is currently being re-engineered and regulatory complexity will continue to accelerate. This is pushing banks to modernize risk management operations for improved efficiencies to help them adapt to change while maintaining profitability.
An existing SunGard treasury customer, SNS will now implement the company’s market and credit risk functionality, which will be seamlessly integrated with its treasury platform. This will provide SNS with a comprehensive framework across all treasury, trading and risk activities, helping drive improved valuation and control processes across these areas. As part of the implementation, the bank’s Financial Markets division will leverage SunGard’s hosted and managed services (including data services) to help ensure it retains focus on core competencies. SNS becomes one of many banks to leverage components of SunGard capital market’s solutions for enhanced capabilities in treasury risk management.
The upgraded treasury and risk platform will provide the bank with a central platform to consolidate all valuations for an integrated, intra-day view of risk across the trading and banking book. This will enable SNS to drive more effective risk management, powered by more accurate, holistic and real-time business insight into risks. Operating from a single platform will also introduce streamlined analysis and reporting processes to support regulatory change.
“As part of our strategy to transform SNS’s risk operations and improve regulatory compliance, upgrading our technology is vital. We are taking a proactive approach to modernizing our infrastructure across treasury and trading, so we can not only fully meet regulatory requirements, but drive business advantage from the benefits of new technology. Having a complete view of risk will help ensure better management, mitigation and overall business performance. Our long and successful relationship with SunGard played an important role in our choice” - Bart Toering, SNS Bank
“Market standards are increasing in complexity for treasury, trading and risk management, leading banks to steer more accurately and profitably. Our market and credit risk functionality will help SNS Bank meet requirements in this area, as well as laying the foundations to support other regulations that come into effect this year and beyond. As a company that delivers risk solutions to customers worldwide, SunGard is well placed to help SNS navigate the complex regulatory landscape and build a risk platform that aids competitive performance.” - Craig Costigan, president, risk and compliance, SunGard