Taipei-based E.Sun Commercial Bank Implements Full Suite of Kamakura Risk Management Solutions

  • Banking
  • 02.10.2018 09:36 am

Kamakura Corporation reported today that Taipei-based E.Sun Commercial Bank has signed an agreement to implement Kamakura's suite of solutions for asset and liability management (ALM), interest rate risk and liquidity management, and interest rate risk in the banking book (IRRBB), as well as managing its liquidity coverage ratio (LCR) and net stable funding ratio (NSFR) in accordance with Basel III regulations. E.Sun selected Kamakura's system after a comprehensive evaluation of available options.


Commenting on the announcement, E.Sun Bank said, "Our selection of Kamakura's suite of ALM, IRRBB, and Basel III LCR and NSFR solutions was based on Kamakura's exceptionally well-integrated solution, which encompasses both the bank's balance sheet management and regulatory requirements. We were impressed by Kamakura's professional approach and the deep expertise of its international, regional, and local consulting staff. 

Doing the one-time data extraction and reconciliation of the bank's exposure before generating the risk matrices gives us a coherent approach to strategic analysis and reporting based on common data architectures. It significantly reduces the time we spend on data analysis and consolidation improving the speed and accuracy of our reporting.

We also appreciate Kamakura's training in the use of its IRRBB module, which we use to generate metrics such as changes in net interest income or changes in the economic value of equity. We incorporate these metrics into both our short-term and long-term planning scenarios, and they help us project volume, pricing, and repricing dates of our future business transactions. Within the IRRBB governance framework, Kamakura's solution makes us aware of the degree of our exposure to risk in all of our interest-rate-sensitive portfolios across the full maturity spectrum." 

Dr. Clement Ooi, Executive Vice President and Managing Director of Asia-Pacific Operations for Kamakura, said, "Riding on its successful implementation of Kamakura's funds transfer pricing module in 2016, E.Sun Bank decided  to trust Kamakura's stable and professional team to expand its  solution to include  ALM, IRRBB, and Basel III's LCR and NSFR. Once the solution is fully implemented, the bank will be fully prepared to meet today's ever-changing regulatory landscape. It will also be able to create simulation scenarios to provide a holistic view of liquidity, interest income sensitivity, and transfer pricing positions. Kamakura's total enterprise risk management solution will also help the bank achieve regulatory compliance, as Kamakura's models and methodologies are supported by reconciliation templates that fulfil all audit requirements." 

Kamakura's Vice President and Director of Professional Services Frances Cheng said, "Kamakura's portfolio includes data elements to capture the characteristics of all financial products. 

By viewing the bank's entire exposure within a single table and a single database, E.Sun Bank can easily create reports, analyze results, and generate risk matrices to satisfy customer groups in Taiwan, Hong Kong, Singapore, Vietnam,  the U.S., Tokyo, Myanmar, and Australia." 

Martin Zorn, President and COO for Kamakura Corporation, said, "The bank has chosen a truly integrated risk management solution that generates accurate risk metrics and is backed by over 28 years of research and product development. Kamakura's enterprise risk management system is user-friendly and flexible in its configuration. Our user interface was designed with typical day-to-day tasks in mind and allows users to set up and run scenarios smoothly and intuitively.

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