The solutions will help Swedbank implement a modular, integrated and comprehensive approach to liquidity risk management, while helping the bank improve balance sheet management, run stress tests, proactively manage the cost of contingent liquidity, enhance instrument coverage, and perform location-specific analysis, claims SunGard.
Swedbank selected SunGard’s Ambit solutions to perform stress testing for idiosyncratic, market-wide and combined scenarios, which will assist in the bank’s contingency planning and in managing liquidity.
As a result of the global regulations on stress testing liquidity, the Swedish Finansinspektionen (FSA) issued a policy statement in fourth quarter of 2010 for all Swedish banks.
SunGard claims that its Ambit will help Swedbank to better measure its liquidity and comply with the new regulations.
Swedbank senior vice president of group treasury Gunilla Domeij-Hallros said one of their main objectives is to be able to demonstrate to both clients and regulators that their banking operation is robust and conservatively managed with strong systems to manage risk and liquidity.
"Because of SunGard’s knowledge of global regulations and its regional presence in the countries we service, we will be able to implement an intuitive, comprehensive risk management system to help us meet regulatory requirements, as well as identify and simulate strategies that can help minimize the cost of and exposure to liquidity risk," Domeij-Hallros said.
