FGB will use SunGard’s BancWare solution for Basel II regulatory capital calculation and reporting requirements as well as asset/liability management (ALM), to help the bank measure and manage balance sheet interest and foreign exchange risk. SunGard’s market risk management solution, Adaptiv will provide market risk management for off-balance sheet issues. The integrated solution will help FGB achieve an enterprise-wide, risk exposure view.
“Our growing business, increased exposure and increased regulatory requirements have created the need for an independent risk-management solution,” said Arif Shaikh, FGB’s Chief Risk Officer. “By providing an integrated solution for Basel II and risk management, SunGard will help us expand our on and off balance sheet risk management capability and enable us to produce regulatory compliant reporting that meets the requirements of both the Basel accord and the Central Bank”.
The integrated solution will help FGB perform capital calculations for both the Standardised and Internal Ratings Based (IRB) approaches to credit risk management under the Basel II framework, and for Standardised market risk calculations. These solutions will help FGB evaluate its market risk at origination, thereby assisting it to achieve reliable, real-time measurement and proactive management of its risk position.
Andreas Hug, Managing Director for SunGard’s BancWare business unit in Europe, Middle East and Africa, said: “With the sealing of this accord, First Gulf Bank has clearly taken a market leading position in a growing regional bank trend to invest in an enterprise-wide risk management framework from a single solution provider. SunGard, with support from our local partner Advanced Financial Solutions, will deliver an entire risk management solution in a time and cost-efficient manner.”