STOC is a software application used to automate the management, tracking and valuation of liquid and loan book collateral. Liquid collateral and loan assets are imported, analyzed for eligibility based on predetermined business policies, valued via multiple market sources and haircuts are applied. Many of the problems faced by financial institutions today come from an inability to properly mitigate the risks involved in lending, most recently experienced in the housing market, in the areas of perfecting and valuing collateral and thus reducing risk. The STOC product provides state-of-the-art functionality to allow the bank to minimize risk but at the same time provide a more efficient service to its customers. At FHLBank Pittsburgh, this results in a more attractive all-in cost of borrowing for customers and an enhancement to the value of FHLBank membership. Today, the Rockall system has 4,000 users worldwide managing more than $500 billion of collateral. In addition to FHLBank Pittsburgh, STOC has recently been implemented at Wachovia, FHLBank Boston and FHLBank New York.
FHLBank Pittsburghâs Group Director-Member Services, Craig Howie, announced the decision and explained, "During these challenging financial times, the role of the Federal Home Loan Banks has expanded to meet the unprecedented borrowing and liquidity needs of our member banks. The volatility in the credit markets means we must ensure that money is available to support the lending needs of our members, as well as continue to minimize both operational and credit risk. After a thorough search of the marketplace, Rockall Technologiesâ Collateral Management System proved to be a far superior product selected for its flexibility, configurability and risk avoidance and mitigation functionality.â
Recent challenges in the lending markets have made the implementation of loan collateral management systems more critical than ever for financial institutions worldwide. As Rockall CEO Luke Nestor explains, âRockallâs product has once again proven to be highly flexible and will facilitate FHLBank Pittsburghâs goal to have a first-rate collateral management process. This will ensure that their loan books are well managed daily from a regulatory and business perspective. Rockallâs executive directors all have more than 25 years experience and thus, Rockall presents a proven track record as the partner of choice to deliver a quality product allowing banks to utilize risk management as a method to increase sales.â
âRockall provides its clients with expert project management, training and full system integration with our current operating systems, allowing us to streamline and automate our approach to provide the required information for our Internal Auditors and meeting bank examiner regulations,â said Kevin Larkin, Director, Business Solutions, FHLBank Pittsburgh.