Kamakura Corporation is pleased to announce that RHB Banking Group, (http://www.rhbgroup.com/), the fourth largest fully-integrated financial services organization in Malaysia, has chosen Kamakura Risk Manager to manage its Net Stable Funding Ratio (NSFR) requirements.
NSFR is the second standard of the Basel III liquidity rules designed to promote stable long-term funding. With Kamakura's NSFR module, the bank will be able to measure, manage, and control its long-term liquidity risk. The solution allows the bank to customize reports for both regulatory compliance and internal use and includes access to subject-matter consulting.
Patrick Ho, RHB Group Chief Risk Officer, said Monday, "When we implemented Kamakura's LCR module in 2017, it not only helped us meet our regulatory submission timeline but gave us the ability to forecast our future LCR ratios. Adding the NSFR module will make our bank fully compliant with Basel III. Kamakura's unique ability to generate simulated NSFR projections will ensure that we are prepared for any economic scenario. With the suite of Kamakura modules, including LCR, NSFR, FTP and ALM, we have now a holistic view of both internal and external risk metrics, all within a single solution."
Ng Sew Cheng, RHB's Head of Group Asset & Liability Management, said, "Kamakura Corporation's professional approach to implementation was key to the successful upgrade. Their team has a proven track record in implementing the NSFR module both locally and overseas and with the subject-matter expertise provided, it ensures that we follow best practices for risk management for years to come. Their solution will also allow us to project future NSFR ratios in any situation, even if we change our business strategy, our divisional assets, or the structure of our balance sheet profile."
Tan Chee Hian, Kamakura's Managing Consultant to RHB, said, "We have a very stable implementation team that fully understood RHB Bank's data and requirements. Mutual trust between RHB and Kamakura made the implementation smooth and successful. Our NSFR module follows the same principle as other modules in the system, giving users the flexibility to configure rules to meet current compliance guidelines and users can easily make changes to respond to future regulatory changes. In addition, our solution allows the bank to conduct stress tests and sensitivity analyses monthly or on an ad hoc basis. Results are transparent and allow users to drill down to the account level for greater detail."
Dr. Clement Ooi, Kamakura's Executive Vice President and Managing Director of Asia Pacific Operations, said, "Today's ever-changing regulatory landscape means that banks need to look beyond just automating regulatory reports and to a solution that manages many aspects of risk. RHB, like other sophisticated banks, needs advanced forecasting and simulation capabilities to prepare for adverse market movements. Kamakura provides a fully integrated ERM solution that allows RHB to actively manage its cash flow positions and profiles. The NSFR module fits seamlessly into the bank's existing architecture and integrates perfectly with its existing simulations."