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Successful Implementation of the Liquidity Solution at DVB Bank AG

FERNBACH, a leading provider of solutions for Enterprise-wide Value and Risk Management (EVRM) has announced that DVB Bank AG, a specialist for transport finance, has opted for the FlexFinance® Liquidity solution. This will enable DVB to implement risk management and profitability management processes which meet the minimum requirements for risk management (MaRisk) and hence the requirements laid out in the second pillar of the Basel Accord on Capital Measurement and Standards (Basel II).

FERNBACH’s FlexFinance® Liquidity will be installed in the bank’s headquarters in Frankfurt. The module will support DVB in measuring, monitoring and controlling liquidity risks. The solution provides a consistent view of a bank’s entire liquidity situation, as stipulated by the Basel II agreement while complying with market standards for quantifying and limiting liquidity risks. Furthermore, it optimises the possibilities for ensuring liquidity which will result in a favourable and stable funding basis for the bank.

DVB chose the FlexFinance® Liquidity solution mainly because of the application’s broad functional range but the fact, that the software successfully fulfilled the stringent internal and external regulations, also convinced the user.

Heinz J. Schneider, Head of Market Risk Control at DVB commented as follows, ‘In 2006, we initiated a project for the further development of the systems and processes involved in measuring liquidity risk. The project was completed at the end of 2007 and liquidity risk measurement was incorporated into the current working business control process on-schedule on 2 January 2008. FlexFinance® Liquidity from FERNBACH-Software embodies a product which fulfils the requirements entirely for a state-of-the-art tool to measure liquidity risk in that it covers the minimum requirements for risk management (MaRisk) as well as the internal standards for controlling and analysing liquidity risk and for reporting practice. The analyses provide for various stress scenarios and a worst-case scenario in addition to several basic scenarios. These include all the cash flows from existing deals as well as the simulative cash flows from open credit commitments and the new business planned by the bank.’

DVB has also incorporated the FERNBACH FlexFinance® Scenario Tool into its portfolio. Legal provisions compel the bank to expand its risk scenarios by additional scenarios which specifically map the risks for the bank.

FlexFinance® Liquidity was implemented in line with the very tight deadlines. The results determined and presented by FlexFinance® constitute a key element of risk reporting, corporate reporting as well as DVB’s strategies for regulatory risk management.

Robert Fiedler, Head of Strategic Product Management at FERNBACH-Software S.A., made the following comments, ‘We are extremely satisfied with the quick and straightforward implementation of the FlexFinance® solution at DVB. On account of the rapid implementation process, DVB was able to improve liquidity management quickly and hence laid the basis for a sound business procedure. We are delighted that both parties are very satisfied and we look forward to working together with one of the world’s leading specialist banks.’