Sunline has recently won the bid for a big risk management system project for a bank in the southwest region, helping the bank construct a major risk management system that integrates collection, monitoring, early warning, control and reporting of large-scale risks exposure. The project has an important demonstration effect on the construction of a robust risk management system in the entire financial industry and will further promote financial institutions to better manage large-scale risk exposures.
Both domestic and foreign banking industry face credit concentration risk as one of their major risks. In recent years, banks in China have increasingly diversified their credit granting methods to customers and customer concentration risks have shown some new characteristics. Effectively managing and controling large-scale concentration risks has undoubtedly become a realistic issue faced by the current banking industry.
In order to promote the strengthening of big risk management and the effective prevention and control of concentration risks for commercial banks, the China Banking and Insurance Regulatory Commission has issued the rules for management of large-scale exposures of commercial banks in accordance with the actual conditions of domestic banking business development and international regulatory standards. (Hereinafter referred to as the "Measures"). The Measures clarify the regulatory requirements for large-scale risk exposures of commercial banks, that is, the limited range of the ratio of the risk exposure of commercial banks to non-interbank single customers, non-interbank related customers, interbank single customers or group customers to their net tier 1 capital.
Sunline takes the lead in implementing a big risk exposure management system
After the Measures were issued, Sunline realized the importance of big risk exposure management to banks and actively coordinated with relevant experts to interpretate and evaluate the possibilities of technologies to support banks. Sunline had organized multiple researches, making use of its strong technological strength as well as rich experience in financial risk management and control, becoming the first company to successfully develop a large-scale risk exposure management system and was at the forefront of big risk management in China.
In response to the development of China Banking and Insurance Regulatory Commission, a bank in the southwest region took the lead in building a major risk exposure management system to strengthen concentration risk management and reduce credit concentration and with its continuous innovation and technological advancement, Sunline has won the bid for the project.
Sunline's large-scale risk exposure management system integrates collection, monitoring, early warning, control and reporting, realizing highly parameterized configuration, debt measurement and measurement process traceability to fully solve the current problems of major banks. Risk exposure management relies on offline manual collection and processing to complete data submission that results in large workload, low timeliness, poor accuracy and inability to meet regulatory online reporting requirements. Sunline make use of latest technologies to help banks accurately improve the level of concentration risk management.
● Clears large-scale risk authority management and user records which helps the bank establish and improve these large-scale risk exposure management organizational structure, clarify management responsibilities and build an effective operating mechanism.
● Automatically integrates and summarizes debt data, customer data, mitigation data, etc. and automatically perform risk exposure measurement for general risks, specific risks, transaction book risks, counterparty credit risks, potential risks and other risks to achieve comprehensive monitoring to achieve automated measurement and improvement of submission quality.
● Sets internal limits for large-scale risk exposures and continuously monitor, warn and control large-scale risk exposures.
● Automatically generates report data according to regulatory requirements to meet the report requirements.
● Continues to collect relevant data and information to effectively support the management of large risk exposures.
The large-scale risk exposure management system built by Sunline the bank in the southwest region not only increases the bank’s regulatory requirements for individual interbank customer risk exposures and reduces dependency on interbank business but also helps the bank invest more funds in the real economy, improves the efficiency of credit resource allocation and further enhances core competitiveness in the new environment of interest rate marketization and economic transition.
Seizing the opportunities, Sunline is always one step ahead in the development of more advanced products with the blessing of technologies. On the road of continuous development, opportunities and underlying technologies keep Sunline in the forefront of the financial technology industry.
