Implementation of BALM
Background
Doha bank was in search for an ALM solutions with flexibility in defining ALM Products which can handle multiple country operations. One of the main concerns for the bank was interface execution time. Because of banks earlier experience of unsuccessful ALM implementation, bank requested Surya to execute a proof of concept (POC) before finalizing Surya’s System. Surya team executed POC in 2 weeks and the project was awarded to Surya.
Challenges
Bank didn’t have a system in place for ALM and all the reports were generated manually by collecting data from various source systems manually.
- Collection of source data from CBS and treasury system to analysis risk and identifying maturity profile to bucket source data
- Time taken to compile data and generate statutory and other management reporting for individual countries and at group level
- Time taken to generate BASEL III reports for reporting requirement of consolidated currency, significant currency for different countries’ operations as per respective central bank guidelines.
Solution
Surya has implemented its ALM solution, BALM at Doha bank at its individual geographic operations and consolidated operation. BASEL III module of the application automated the statutory reporting requirement. This project was executed in the span of 2 months.
A Brief on BALM implementation
BALM implementation was started in the month of June 2014 and was completed for its Doha, Kuwait, UAE and consolidated operations within 2.5 months. Implementation of BASEL III module for Qatar central bank reporting was implemented in the span of 1 month. Surya implemented BASEL III for Kuwait after Kuwait central bank finalized the guidelines in March 2015.
Results
- Liquidity and interest risk analytical functions for individual country operations and at group level
- Automation of MIS reports for both management and statutory reporting
- Generation of BASEL III reports based on each country central bank directions with audit functionality of drill down
- Entire interface processing from data generation is automated to run daily. Entire data processing interface processing takes less than an hour in contrast to previous execution time of more than 24 hours.
- Automated alerts are provided to alert users on status of execution of interfaces
- Tools are delivered to users for the reconciliation of BALM report values with source system
- Tools are provided to users to maintain the interface configuration parameters
- Surya has delivered custom MIS reports which allows bank to analyse country wise, sector wise exposure analysis
Doha bank started its operations in India in March 2015. Bank is planning for BALM implementation in Indian operation after completing implementation of core banking solution.
