Based in Toledo, Spain, Caja Rural de Toledo is a regional retail bank which serves customers within this province outside Madrid. A large proportion of its portfolio consists of interest-rate sensitive mortgages. Ipar Kutxa is also a regional retail bank which is based in BilbÃ£o and operates in the northern Spanish Basque province. Both banks selected BancWare to measure the interest rate risk of their banking books to help improve overall balance sheet management.
BancWare Focus ALM delivers static and dynamic ALM modeling that will help Caja Rural de Toledo and Ipar Kutxa to more effectively manage interest rate, foreign exchange and liquidity risk. To help the banks better understand the impact of market changes on their balance sheets and to make more informed business decisions, BancWare provides calculations for on- and off-balance sheet products, the ability to validate data and produce reporting. BancWare also provides functionality for hedge accounting, carry amount calculations and earnings and capital simulation in compliance with IAS39 accounting regulations.
BancWare Data Integration provides data collection, validation, transformation and standardization. BancWare Data Integration will help give the banks confidence in not only the quality of their data, but also in the analysis performed.
Following a recent initiative by the Bank of Spain to enforce more efficient risk management processes, Spanish banks have been reviewing the standard of their financial modeling. SunGardâs BancWare will help Caja Rural de Toledo and Ipar Kutxa to produce compliant reports that are generated in accordance with the formats required by both the Bank of Spain and Basel II. The flexibility inherent in the system means additional transformations can be easily incorporated, should regulations change and different data is required.
Ignacio Naranjo Posada, financial and administrative deputy director for Caja Rural de Toledo, said, âHaving previously used an internally developed system which no longer met the standards required by the Bank of Spain, we were looking for greater sophistication and integration from our analysis. We chose SunGard because of its ability to provide the functionality, as well as its success in Spain and across Europe.â
Carlos Oses Irulegui, general director of Ipar Kutxa, said, âArmed with accurate data from BancWare Data Integration and the ability to perform more advanced calculations with BancWare Focus ALM, we are confident that we will be able to create better quality reports which will help provide us with vital information on which to base future business decisions.â
Terence Faherty, president of SunGardâs BancWare business unit, said, âWe believe Caja Rural de Toledo and Ipar Kutxa will benefit from the BancWare technology and the expertise of our Spanish-speaking consultants and Madrid-based partner, Intermoney.â