Alfa-Bank completed the project on automation of calculation of standards of liquidity on Basel III

2018: Automation of calculation of standards of liquidity on Basel III

On July 19, 2018 the Neoflex company announced project completion on automation of calculation of obligatory standards of liquidity of Alfa-Bank Banking group on Basel to III.

Alfa-Bank is obliged to observe the Standard of Short-term Liquidity (SSTL). Since January 1, 2018 the Standard of Structural Liquidity was also added to the list of obligatory standards (the standard of net stable funding) (SNSF)). These standards are developed by the Central Bank of Russian Federation on the basis of Basel III — the recommendations of Basel Committee on Banking Supervision.

"Automation of calculation of standards — a part of digital transformation of Alfa-Bank which affects both external customer services, and internal processes. The project is implemented based on risk management system of Finastra Fusion Risk. Thanks to what the bank has an opportunity to quickly control values of standards of NKL and NChSF and to prepare the regular reporting". Valery Liseykin, the head of department on regulation of liquidity of Alfa-Bank

Relying on positive experience of cooperation with Neoflex, Alfa-Bank selected the company as IT software supplier to the project of automation of calculation of standards of liquidity. During the project integration of the Finastra Fusion Risk system with the internal data warehouse of bank and information service Interfax Ltd on financial instruments was executed.

The integrator noted, cho the large volume of data became the main call when implementing the project. A system was optimized on performance taking into account a huge portfolio of financial instruments of Alfa-Bank. The work was completed in the planned terms.

2017: Integration of Finastra Fusion Risk with information service of Interfax

In 2017 specialists of Neoflex company developed for the Alfa-Bank group of business requirement to automation of calculation of NKL and NChSF and also implemented integration of the Finastra Fusion Risk system with information service Interfax Ltd for receiving by a databank on levels of highly liquid assets.

2015: The project of risk management according to standards Basel II and Basel III

The Cinimex company within strategic partnership with the supplier of financial software, Misys company, implemented in 2015 in Alfa-Bank the project on implementation of the software solution Misys FusionRisk providing transparency and efficiency of business risk management processes according to requirements of international standards Basel to II and Basel III.

With entry into force in the territory of the countries of an EMEA complex new, developed according to the results of crisis, requirements of Basel Committee on Banking Supervision before one of the largest Russian banks - JSC ALFA-BANK the task of transition to new standards of financial stability arose. As the platform for the solution of a task Misys which proved in the FusionRisk software financial market of the international vendor as which official partner in Russia the Cinimex company acts was selected.

During the first stage of the project it was necessary to provide the loading of the reporting of credit institutions which is monthly published on the official site of the Central Bank of the Russian Federation. For this purpose engineers of Cinimex company performed integration of a banking system with the website and web service of the Bank of Russia by means of implementation of an integration bus of Misys FusionFabric Connect, and then developed a configuration for import of reporting data and the reference book of credit institutions to building block system on Misys FusionRisk risk management.

The main complexity of the project consisted in need of creation of flexibly configured model of calculation of probability of a default (Probability of Default) for the Russian Banks segment, proceeding from individual technical requirements of Alfa-Bank. This model means a large number of the configured settings and multi-stage settlement process during which initial financial and non-financial data are repeatedly transformed and processed. Requirements of Bank managed to be implemented successfully, thanks to functionality of building block system of FusionRisk allowing to work with the user tables. The user interface was at the same time developed for the module of accounting of defaults ("The central default system") which allows to enter and edit the events of default manually, to make package loading, to create reports, to manage reference books, etc. Use of technology of a uniform input of Single sign-on (SSO) for the users registered in two Active Directories became one of features of the developed interface.

According to Martin Piletski, the Head of the Information technologies Block of JSC ALFA-BANK, "the software solution Misys FusionRisk gives ample opportunities for automation of operating activities and reduction of time for preparation of the reporting, allowing to minimize at the same time risks and to react quickly to market changes and legislations. Finally it promotes acceleration of process of acceptance by Bank of reasonable business solutions for the benefit of the clients".

During integration works the Cinimex company implemented also services of automatic data loading about defaults from a show-window of corporate storage and asynchronous return of the answer about results of data processing in the FusionRisk system. In cooperation with the Misys command interfaces were developed for data acquisition for calculation of the assets weighed on risk level (Risk Weighted Assets), unloadings of data on results of calculation of RWA and also data on defaults from the FusionRisk system in a show-window of corporate storage.