CBA enhances risk management and dealing technology

The Commonwealth Bank of Australia (CBA) has carried out a series of initiatives aimed at enhancing efficiencies in its dealing and risk management operations.

The bank has purchased the complete Kamakura Risk Manager (KRM) enterprise risk management software suite including credit risk, market risk and asset and liability management simulation software. These will supplement a transfer pricing module, KRM-tp, bought last year.

“We are now processing over 16 million transactions daily through our new transfer pricing system, with KRM being the cornerstone for generating the transfer price rate on all transactions,” said Steven Carritt, general manager for asset and liability management in CBA's treasury unit. “The transfer price rates from KRM go straight into the group data warehouse and are used for the key calculations in measuring all forms of internal profitability – whether it is for a business unit, a product or client.”

CBA has also gone live with SunGard/Front’s eGlobalTrader, a browser-based dealer distribution system for front-office deal capture of foreign exchange and money markets. The bank’s distribution dealers in nine dealing rooms - Sydney, Melbourne, Brisbane, Adelaide, Perth, Christchurch, Tokyo, New York and London - will use the system for pricing, capturing and processing customer-driven foreign exchange transactions, including spot, forwards, swaps, FX extension/pre-deliveries and multi-currency money market loans and deposits.