Headquartered in Hong Kong, China CITIC Bank International Limited (CNCBI) is a full-service commercial bank, offering a comprehensive suite of personal and business banking, wholesale and cross-border banking services, as well as treasury and global-market solutions. CNCBI’s footprint in Greater China includes 36 branches in Hong Kong in addition to offices in Macau, New York, Los Angeles, and Singapore. Its mainland, incorporated, wholly-owned subsidiary CITIC Bank International (China) Limited is headquartered in Shenzhen with branches in Shanghai and Beijing. CNCBI aspires to become China’s financial solutions provider of choice.
Hong Kong economy often experiences interest rate and foreign-exchange-rate fluctuations, especially when new economic developments emerge unexpectedly. As such, it is important for banking institutions to anticipate their customer’s needs and financial aspirations while boosting operational efficiency and profitability. CNCBI needed a flexible and robust risk-management solution to measure the potential impact of market events on interest rates and cash flows, and to provide efficient risk-management analysis for the bank and its related entities.
In 2011, CNCBI implemented Oracle Financial Services Analytical Applications Infrastructure, Oracle Financial Services Asset Liability Management Analytics, and Oracle Financial Services Asset Liability Management, and integrated them with Oracle Business Intelligence Suite, Enterprise Edition to strengthen and promote its transparent risk-management culture. CNCBI’s business users now have access to granular and actionable asset liability management insight within operational processes.
For example, Oracle Financial Services Asset Liability Management provided deterministic simulation results that enhanced the transparency of critical issues and offered the bank timely insight into managing interest-rate and liquidity risks. It enabled the bank to monitor liquidity risks, fund concentration and marketable assets on a daily basis, and improve risk management and capital allocation to optimize revenue.
The bank has also accelerated report production by generating liquidity-gap and net-interest income reports, daily. As a result, CNCBI gained an audit trail for the entire balance-sheet-management process and improved asset-liability management.
CNCBI enhanced decision-making by gaining deeper insight into products and business units’ related incomes, such as interest income and fee income. CNCBI can now produce detailed liquidity reports across various dimensions, including product and line of business, as well as supporting user-defined reporting dimensions.
China CITIC Bank International Limited chose Oracle Financial Services Analytical Applications Infrastructure, Oracle Financial Services Asset Liability Management Analytics, and Oracle Financial Services Asset Liability Management for their highly scalable and robust analytical risk engines and customer relationship data model. The Oracle solutions enabled the bank to integrate seamlessly with Oracle Business Intelligence Suite, Enterprise Edition and provided an integrated risk and performance management platform to the bank.