Ambit BancWare ALM & Market Risk Management
Challenging market conditions put downward pressures on net interest margins of banks. Furthermore, fierce competition for deposits also limits a bank’s ability to significantly lower customer interest rates. The sub-prime mortgage meltdown also resulted in interest rate volatility, a severe reduction in secondary market liquidity, and limitations on traditional sources of funds. Banks need an internal risk measurement and pricing system that is consistent with market-based pricing mechanisms and that takes market risks into account.
SunGard can help. SunGard’s Ambit BancWare ALM & Market Risk Management provides an integrated risk management solution that facilitates complete multidimensional analysis of the balance sheet. Ambit BancWare ALM & Market Risk Management also allows modeling of customer behavior, economic valuation, interest rate scenarios and a wide range of other variables quickly, easily and accurately.
Features
- Provides scenario-dependent evolution of various results, including interest income/expense, balance, market values, sensitivities, cash-flows and gap profiles
- Allows quantification of the market value changes of assets, liabilities, and economic value of capital resulting from interest and exchange rate movements
- Provides an integrated solution for IAS39 compliance
- Allows flexible definitions of business assumptions
- Includes specialized portfolio calculation models for market risk simulations, sensitivity analysis and stress testing that can be installed in-house or accessed as a hosted solution
Benefits
- Understand the impact of market changes on the balance sheet more clearly to make more informed business decisions
- Fully quantify potential impacts of interest rate and exchange rate fluctuations on future earnings and cash flow streams
- Measure interest rate risk inherent in the balance sheet from the economic value perspective
- Streamline IAS 39 compliance efforts to include asset/liability management, hedge accounting, mark-to-market, and back-office processes
- Acquire calculation capability on a cost-per-use basis without the headache of monitoring, maintaining and upgrading hardware infrastructures