Basel-II News

Russian bank purchases IPS-Sendero KRM risk management solution

(Jan 22, 2008)-- Fiserv IPS-Sendero, a unit of Fiserv, and a provider of risk and value management solutions to financial institutions worldwide, announced today that Bank of Moscow has selected the IPS-Sendero KRM risk management system for its asset/liability management.

The IPS-Sendero KRM system will allow the bank to promptly make decisions related to more efficient and profitable management of its assets. Used for credit risk, market risk, interest rate risk, and Basel II capital calculations, IPS-Sendero KRM incorporates advanced risk concepts developed by professor Robert A. Jarrow, an originator of the Heath-Jarrow-Morton multi-factor term structure model.

“This system will enable the Bank of Moscow to achieve a new level of quality in risk management,” said Igor Burlakov, director of the Bank of Moscow’s resources and liquidity risks department. “IPS-Sendero KRM complies with international standards, including the Basel II Accord, and it will allow the bank to optimise its risk management, including interest-rate, currency and liquidity risk.”

Bank of Moscow is Russia’s fourth largest bank, with $16 billion in assets. It serves 98,000 corporate customers and almost 8 million individuals through 102 offices in Moscow and 53 regional branches covering eleven time zones from St Petersburg to Vladivostok.

“As we have seen from recent market events, banks require tools that provide a quick, efficient and accurate picture of the risks they face. IPS-Sendero KRM creates that picture, allowing banks to make profitable business decisions without relying on a ‘fly by the seat of your pants’ style of risk management,” said Chuck Rowland, vice president and managing director of IPS-Sendero international operations. “We are very pleased that Bank of Moscow has selected IPS-Sendero KRM to help meet its risk management needs, and we look forward to working with the bank to provide the efficient framework it needs.”

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