SOURCE: Kamakura Corporation

Kamakura Corporation

October 14, 2010 10:00 ET

Kamakura Corporation Announces World's Second Largest Bank, China Construction Bank, Has Gone Live With KRM for Asset and Liability Management

NEW YORK, NY--(Marketwire - October 14, 2010) -  Kamakura Corporation announced Thursday that the world's second largest bank, China Construction Bank, has gone live with its enterprise wide risk management software system Kamakura Risk Manager (KRM) for asset and liability management on September 10, 2010. China Construction Bank uses KRM to manage interest rate risk and the liquidity risk of their banking book. KRM is configured in production to perform a wide range of calculations: market valuation, net income simulation with rollover, new business and rebalancing targets and assumptions as well as with customer behavioral models, net income stress testing under various regulatory scenarios and business scenarios, and economic capital calculations for interest rate risk. The Bank uses KRM to analyze 3.5 million transactions and to produce daily, monthly and quarterly reports for the Bank.

Dr. Donald van Deventer, founder and CEO of Kamakura Corporation, commented on Thursday, "Kamakura is very honored to work with one of the largest and most prestigious banks around the world, China Construction Bank. The Chinese banking industry is one of the fastest growing and most dynamic banking sectors in the world. We are gratified that banks in Beijing have leap-frogged the traditional silo-oriented risk management strategy to take a full enterprise wide view of risk. Given economic development and interest rate liberalization in China, it is essential that China's sophisticated banks put the best risk management software in place as soon as possible. We believe that China Construction Bank has made significant progress in risk management in a short period of time. Many banks in North America have expressed admiration that the Bank can move forward more quickly than organizations burdened with legacy systems and a silo risk political organization."

China Construction Bank is China's second largest bank and the second largest bank in the world by market capitalization, according to the Financial Times. The Bank has 13,384 domestic branches with total assets of 9.6 trillion RMB in 2009. China Construction Bank has been an industry leader in asset and liability management practice in China. To build the organization into a first class global bank, China Construction Bank endeavors to adopt the best practice in risk management. Live production of KRM is an important milestone of its continuous effort to reach the best practice in risk management.

Kamakura Risk Manager is a fully integrated credit risk, market risk, interest rate risk, limit management, economic capital and performance management system. It is used around the world by banks, insurance companies, government entities and other clients for risk management and government mandated stress tests and capital adequacy measures like Basel II and III and Solvency II. KRM fully supports Basel II's Internal Capital Adequacy Assessment Process. The KRM-rp web-based reporting system offers both modern Chinese and traditional Chinese reporting of risk management measures via the internet. Kamakura Risk Information Services currently offers daily updates of default probabilities for public firms in China and 29,000 public firms in 32 other countries. 

Kamakura's offices in Beijing and Shanghai work closely with its distribution partner Fiserv to support its rapidly growing client base in China, Malaysia and Thailand. Kamakura's Managing Director Li Li and her staff can be reached at Kamakura's Chinese offices as follows:

Kamakura Corporation, Beijing
Level 19 Tower E2 Oriental Plaza
1 East Chang An Avenue
Dong Cheng District
Beijing, China 100738
Telephone: 86 10 8520 0455
Facsimile: 86 10 8520 0220

Kamakura Corporation, Shanghai
Level 29 Shanghai Kerry Centre
No. 1515 Nanjing West Road
Shanghai, China 200040
Telephone: 86 21 6103 7052
Facsimile: 86 21 6103 7053

About Kamakura Corporation

Founded in 1990, Honolulu-based Kamakura Corporation is a leading provider of risk management information, processing and software. Kamakura, along with its distributor Fiserv, was ranked number one in asset and liability management analysis and liquidity risk analysis in the RISK Technology Rankings in 2009. Kamakura Risk Manager first sold commercially in 1993 and now in version 7.1.2, was also named in the top five for market risk assessment, Basel II capital calculations, and for "risk dashboard." Kamakura was also ranked in the RISK Technology Rankings 2008 as one of the world's top 3 risk information providers for its KRIS default probability service. The KRIS public firm default service was launched in 2002, and the KRIS sovereign default service, the world's first, was launched in 2008. KRIS default probabilities are displayed for 2000 corporates and sovereigns via the Reuters 3000 Xtra service. Kamakura has served more than 200 clients ranging in size from $3 billion in assets to $1.6 trillion in assets. Kamakura's risk management products are currently used in 33 countries, including the United States, Canada, Germany, the Netherlands, France, Austria, Switzerland, the United Kingdom, Russia, the Ukraine, Eastern Europe, the Middle East, Africa, South America, Australia, Japan, China, Korea and many other countries in Asia.

Kamakura has world-wide distribution alliances with Fiserv (www.fiserv.com), Sumisho Computer Systems (http://www.scs.co.jp/english/), Unisys (www.unisys.com), and Zylog Systems (www.zsl.com) making Kamakura products available in almost every major city around the globe.

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