Bank of Finland to upgrade risk systems with Trema

The Bank of Finland will replace its mainframe and proprietary foreign exchange reserves, monetary policy and customer payments systems with an off-the-shelf service provided by Stockholm-based Trema.

The country’s central bank will implement Trema's Finance Kit product, which includes the Swedish company’s new central bank accounting module II service. The move represents an upgrade for the Bank of Finland’s risk management capabilities, and will allow it to make calculations on a real-time basis as well as extending its advanced limit management capabilities.

The Microsoft-based system will replace a number of the Bank of Finland’s proprietary risk management applications and interface to external systems including market data feeds, a credit risk management system, the bank's accounting system and the Swift messaging network.

The Bank of Finland is a member of the European System of Central Banks (ESCB) and is responsible for monetary policy in Finland. Based in Helsinki, the bank maintains the Finnish currency supply and also holds and manages the foreign currency reserves.

“As Trema Finance Kit is already in use at several ESCB member banks as well as other central banks in accession countries and outside of Europe, our selection of the system for the management of foreign reserves was well justified,” said Pentti Pikkarainen, head of the market operations department at the Bank of Finland.