Risk Management Solutions from Fiserv Is Selected to Support Internal Ratings Based Model Development
Brookfield, Wis., 4 March, 2010 - Fiserv, Inc. (NASDAQ: FISV), the leading global provider of financial services technology solutions, announced today that Bank Ayudhya Public Company Limited (BAY) has selected KRM from Fiserv to help the Thailand-based institution develop internal ratings based models for its Corporate and small/medium enterprise businesses.
Used to manage credit risk, liquidity risk and interest-rate risk, KRM incorporates advanced risk concepts developed by Robert A. Jarrow, an originator of the Heath- Jarrow-Morton multi-factor term structure model. Jarrow is also the recipient of the Risk Magazine 2009 Lifetime Achievement Award in recognition of his contribution to the modern discipline of mathematical finance.
The probability of default (PD) results and ratings developed as part of this project eventually will be embedded into the bank's credit approval process. KRM's output from this project is considered to be one of the most crucial components of the bank's credit risk management strategy.
"KRM's full multi-period, macro-factor driven simulation will help the bank's credit risk managers better estimate default probabilities as they rise and fall with the economy," said Clement Ooi, vice president and managing director of Asia-Pacific operations for Risk and Performance Solutions, Fiserv.
About Bank of Ayudhya Public Company Limited
Bank of Ayudhya Public Company Limited [symbol in SET: BAY] is the fifth largest commercial bank in Thailand with total assets of Baht 782 billion. BAY provides a full range of banking services to both its commercial and individual customers through 576 branches nationwide and 4 overseas branches. On 3 January 2007, BAY and GE Money, a premiere global consumer financial services firm, have successfully become strategic partners. GE Money and the Ratanarak Group are now major shareholders with 33% and 25% stake in BAY respectively. For more information, please visit the Bank of Ayudhya website, www.krungsri.com.
About Fiserv
Fiserv, Inc. (NASDAQ: FISV) is the leading global provider of information management and electronic commerce systems for the financial services industry, driving innovation that transforms experiences for financial institutions and their customers. Ranked No. 1 on the FinTech 100 survey of top technology partners to the financial services industry, Fiserv celebrated its 25th year in 2009. For more information, visit www.fiserv.com.