Chinese bank picks credit limits provider

Chinese bank monitors exposures as it prepares to build out in derivatives

The China Construction Bank Corporation (CCB) has selected Algorithmics to help it measure and manage its international credit exposure and credit limits. Algorithmics says this is the first such deal and represents a landmark for the Chinese banking industry as it moves towards adopting international risk management standards. CCB bought Algo Credit Exposure and Algo Credit Limits to assist in measuring and managing its counterparty credit risk, as well as viewing and managing consolidated risk exposure across the whole enterprise. CCB is the world’s 11th largest bank ranked by Tier 1 capital, and the highest-ranked Chinese bank.

CCB is aiming to expand its international business in derivatives products in order to use its capital most effectively. Michael Zerbs, president and chief operating officer at Algorithmics said: "This is likely to be closely watched by all Chinese banks that are considering moving into the process of managing their international credit exposures and limits." He added: "We are seeing a great deal of interest in risk management and are strongly committed to further expansion in the Chinese market in the months ahead."

Jiang Guo-Yun, CCB’s international director said: "We believe we can use our capital most effectively by using the latest technology to mitigate our exposure to risk."

BaselAlert.com