The most important element of advanced risk management is data collection and consolidation from both, trading and banking book. Reuters’ latest solution brings the two sides together and provides a consolidated view on interest and liquidity risks.
One of the most important tasks of a bank treasury department is to manage overall risk exposures of the financial institution. For managing these types of risks the positions from both trading and banking books are required.
Traditionally, asset and liability management systems are typically accrual and monthly based, focused on the banking book and address issues, mainly related to long term management of interest rate risk. On the other hand, trading systems are typically market-to-market and real-time based, covering trading books.
Maintaining and monitoring interest rate exposure and liquidity risk data across trading and banking books is therefore a major challenge for treasuries and responsible risk managers.
Kondor+ Interest Rate and Liquidity Risk module is Reuters` answer to the challenge. The solution consolidates banking and trading books and provides an Asset/Liability view on the total banking interest rate and liquidity risks exposures. On top of the integrated banking and trading book information, special ALM-relevant reports are available to treasury departments and risk managers.
In addition, since the module is built around Kondor+, Reuters flagship Trade and Risk Management product, it enables the use of the powerful Kondor+ functionality on the integrated banking and trading book data.
The module is an attractive extension for new and existing Kondor+ users and has already been successfully deployed on multiple customer sites in Europe, Middle East and Asia.
