Market Risk

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Calculate interest rate capital requirements, according to time structure of the institution’s assets and liabilities, analyzing the different rates, currencies and products in which the institution does business.

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Market Risk
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    Data Migration Control

    When implementing a new system it is essential to validate the migrated information. At CPA Ferrere we have methodologies and tools that permit analyzing the quality of this information, as well as to lay out an action plan for correction and quality improvement.

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    Testing

    The Software Quality Assurance (SQA) service of CPA FERRERE with a business perspective focus allows its clients to ensure software quality and efficiency, minimize process implementation times, and cut costs associated with error detection and correction.

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    RPA

    Robotic Process Automation (RPA) is a way to automatically process typically repetitive and operating rule-based activities. This robot software is used to capture and interpret transactions using IT applications and Artificial Intelligence, data manipulation and communication across different systems without affecting them.

    CPA Ferrere offers its own differential methodology using a multi-dimension approach, based on knowledge of technology, business and its processes, internal control, administration and finance, as well as accounting.

    That methodology, combined with the technological quality of our partner Automation Anywhere, allows us to jointly provide services/products adapted to the needs of each banking organization. We analyze, restructure and automate your processes/activities, generating significant savings, thereby redirecting the labor force and accompanying the organization on its digital transformation.

     

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    Liquidity

    Analyze funds requirements for different moments in time, according to the time structure of the institution’s assets and liabilities, analyzing the different currencies and products in which the institution does business.

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Structural Interest Rate Risk derives from the potential risk that the results (accounting perspective) or the net worth of the entity (economic perspective) will be affected as a consequence of interest rate movements. This risk arises due to the difference between when the lending and borrowing rates of the entity are recalculated.

The interest rate risk from the perspective of the bank’s net worth is produced by movements, whether parallel or not, in the relevant interest rate curves, triggering changes in the economic value of the bank’s net worth.

Advantages:

  • Support for the design, automation and implementation of Interest Rate Risk tracking reports from an economic perspective, considering base and stress scenarios.
  • Application of the Basel sensitivity analysis methodology, analyzing the institution’s rate sensitive asset and liability structure.
  • Determination of demand deposit stability and the structural vector of deposits, by creating a model to determine the hard core of deposits with no term by applying the Basel proposed methodology.
  • Automation of management reports and regulatory requirements.

Successful cases:

  • Banco Bandes Uruguay
  • Banco Hipotecario del Uruguay
  • Banco Continental Paraguay

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