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Integrated treasury management for Chinese bank

Carol Ko | Nov. 25, 2008
Bank of Nanjing to deploy a market risk management tool kit including scenario simulation.

HONG KONG, 24 NOVEMBER 2008 Bank of Nanjing, a commercial bank in China, has recently implemented an integrated treasury management approach across its domestic and foreign currency products to help improve its risk management practices.

The Bank of Nanjing Corporation is a new-style joint-ownership commercial bank made up of state, domestic-held, foreign-held and public stocks. Headquartered in Nanjing city, the Bank of Nanjing presently has RMB1.837 billions (about US$269 million) worth of registered capital. It operates over 60 branches with more than 1,600 employees across China.

Under the agreement, the Bank of Nanjing will streamline its treasury operations using SunGard's Ambit Treasury Management solution, which will replace the bank's existing systems and manage the bank's local money market and fixed income products, as well as its foreign exchange deals. The treasury management solution is also said to aid the bank to manage its derivatives, and to maintain its trading book on a single system.

SunGard's Ambit is a banking solution suite for retail, commercial and private banks, providing banks with solutions that support front, middle and back-office operations, as well as solutions for financial management, risk and compliance. US-based SunGard, a software and processing solutions provider, targets the financial services, higher education and the public sector.

Single management system

A key requirement of our selection process was the ability to implement a single system to manage our local and foreign instruments. Prior to the Ambit solution, we were running individual systems for local and foreign trades. In addition, the Ambit Treasury Management solution gives us a front-to-back-office approach, meaning our straight-through processing and efficiency capabilities can be greatly improved, said Shu Xingnong, vice president at Bank of Nanjing.

Risk management capabilities have taken on increased importance for all banks in China. With the treasury management system, the Bank of Nanjing will deploy a market risk management tool kit that includes scenario simulation and VAR (Value at Risk) for the bank's traditional financial instruments as well as the new derivatives it wants to trade. The solution's limit management capability will also help the bank ensure its interbank credit risk remains within controllable boundaries.

 

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