17 November 2009 News

 

Swedbank picks Aleri for liquidity risk management

Swedbank is to use Aleri's Liquidity Risk Manager as its liquidity risk management tool. It will be used by the bank's Group Risk, Compliance & Finance, and Treasury departments to pprovide an enterprise-wide view of its risk exposure and meet regulatory demands. 

"Aleri LRM will provide us with a flexible management, reporting and a stress testing environment that will enable us to model stress events and gain insight into how different scenarios impact the bank's liquidity exposure and assets value," said Erik Öhman, Head of Operations, Swedbank Markets, Swedbank. "We feel LRM will provide us with the tools to successfully manage and limit our exposures to risk as we move forward beyond the crippling effects the global financial crisis has had on the industry."

Aleri LRM allows banks to analyse global operational liquidity risk over a short- to medium-term time horizon, looking at projected liquidity by product, business line, location, and currency under different economic scenarios. It provides insight into the effects of stress events on enterprise liquidity, enabling more effective contingent liquidity risk management practices and allowing banks to analyze and act on fast moving data by:

• Calculating forward liquidity exposure (FLE) positions
• Identifying periods at risk
• Defining and storing liquidity scenarios and parameters by end users themselves
• Running on-demand stress scenarios against FLE positions
• Intelligently applying and recommending use of counterbalancing capabilities to FLE positions
• Improving liquidity mismatch reporting to regulators (EMR) and bank's management.