National Housing Bank (NHB) chooses Credence Asset Liability Management Solution

Risk management in general and financial risks embedded with Asset Liability Management (ALM) in particular, have become most important for the existence, stability and growth of banks and financial institutions in the present scenario when global changes, regulatory norms and customers' demands for technology driven, quality oriented and performance-based services are significantly growing. In the view of the BASEL II and RBI's latest guidelines to banks and institutions, it has become very important not only to understand the various risks that an organisation faces but to view them in an integrated manner and measure them with appropriate tools and techniques.

National Housing Bank has chosen Credence ALM solution to manage their balance sheet risk and the financial net worth.

Following a competitive evaluation of different solutions Credence Analytics was awarded the mandate by the development finance institution for its asset liability management solution, CALMs. The solution is a comprehensive reporting tool kit for measuring, analysing and monitoring different elements of risks. The solution would have a foundation on the bank's balance sheet and include tools which are designed to provide capabilities for segmentation and delineation of interest rate risk into various components.

The Credence ALM solution, CALMs now boasts of a client base of 5 customers and can be used by ALCO or the integrated risk cells of banks and other financial institutions.

The ALCO cell needs to manage assets and liabilities at the grass root level to have a holistic view of deposits, advances and payments. Risk can be managed by tracking and projecting gaps and develop hedging strategies for risk containment. Credence Asset Liability Management Solution (CALMs) is a comprehensive ALM solution designed to manage intermediation risk and the net worth of the institution by tracking risk, liquidity and capital. CALMs is designed to help in the interest-rate risk management of the complete balance sheet of the institution.

"CALMs goes beyond mere regulatory reporting and is designed to serve as the central tool for analysing, monitoring and simulating the balance sheet and aid in enterprise-wide risk management. We are proud to be implementing our solution at a prestigious account like NHB." says Mr. C. K. Guruprasad, Director – Marketing, Credence Analytics.

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