Jordan Dubai Islamic Bank (JDIB) has specified SunGard's Ambit software for its credit assessment and credit portfolio monitoring duties. The installation is intended to help lay the foundation for risk-based decision-making and pricing at the Jordanian headquartered bank, and to enhance JDIB’s overall capital and credit risk management procedures.
The bank will use SunGard’s Ambit software suite to help improve the efficiency of its process and specifically its relationship management capabilities, a key concern as it strives to improve customer service. The installation, which is due to complete by year end, will also provide better visibility into JDIB’s financing portfolio and help to meet the Basel II capital adequacy regulatory requirements. The bank is also hopeful it will be flexible enough to scale and adapt to meet the impending post-crash Basel III regulations, for which the governing B.I.S. supervisory body have just provided a Basel III progress report.
The Ambit Credit Assessment module will help JDIB standardise its spreading and credit assessment processes and deploy uniform risk rating models, particularly for its corporate and small and medium-sized enterprise (SME) clients. The solution will also help the bank enhance face-to-face client interactions via 'strategy screens', helping to nurture client relationships in line with the core Islamic finance principle of 'partnership', and thereby helping reduce relationship risk.
Commenting on the project and its ability to skip legacy technology, Ahmed Abdullah, deputy chief executive and chief risk officer for JDIB, explained that: "As a relatively young bank, JDIB has the opportunity to establish a comprehensive risk management system that will help us meet our profitability objectives, while maintaining prudent financing standards and appropriate capital adequacy.”
“SunGard's Ambit credit risk management solution suite will help us make better informed decisions about credit worthiness at the initial stages of client evaluation,” he added, “and estimate the impact of both internal and external factors on the risk around our portfolio, and to subsequently determine the risk associated with our financing portfolio to our short and long term profitability."
By Neil Ainger