- The FlexFinance Liquidity solution from FERNBACH reduces risks and increases transparency at the leading bank for transport finance -
London- 2 April 2008 – 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 worstcase 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.’
DVB Bank AG is a specialist bank focusing on transport finance and is one of the leading advisory banks and financing institutions. It offers its clients integrated finance and consulting services in the shipping, aviation and land transport sectors. DVB has offices in Frankfurt/Main, London, New York, Rotterdam, Hamburg, Bergen/Oslo, Piraeus, Hong Kong, Singapore, Tokyo and Curaçao. DVB Bank AG shares are listed on the Frankfurt Stock Exchange (ISIN: DE0008045501).www.dvbbank.com
FERNBACH has developed the solution offering FlexFinance®, which is based upon a sophisticated methodology called EVRM. EVRM is a vision and a solution for the integration of risk management, risk and regulatory requirements, balance sheet reporting and controlling within financial institutions.
The EVRM methodology is built upon a meta level data repository which collects all data from the banking and trading books and stores this centrally while simultaneously standardising and enriching the data. This centralised meta repository of financial transactions guarantees single calculation of all financial ratios ensuring perfect alignment and reconciliation so that the data can be used for purposes such as Basel II, IAS/IFRS (Multi- GAAP), Liquidity, Profitability, Regulatory Reporting, etc. The entire process is transparent and fully auditable as uniquely the data can be traced back to the deal level. This advanced approach also enables the bank to costeffectively implement new requirements as they occur such as ICAAP. www.fernbach.com
For more details please contact:
Hazel Butters or Sean McManus
Prompt Communications on behalf of FERNBACH Software
Tel: 020 8996 1653 / 07780 687813
Director of Group Marketing
Tel.: + 352 / 40 22 44 405
Mob.: + 352 / 69 15 55 174
FERNBACH – the essence of banking
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