Fernbach Software and Norddeutsche Landesbank (Nord LB) Luxembourg have concluded a contract for the solution FlexFinance Analytix Liquidity Reporting. Due to a lengthy cooperation with Fernbach, Nord LB Luxembourg decided to add the high performance software, developed specially for liquidity risk management in banks, to its existing solutions.

Nord LB Luxembourg, which is a sub-group of three independent financial institutions, will use FlexFinance Analytix Liquidity Reporting to manage liquidity risks in the three companies and the sub-group. Liquidity trends and liquidity options will be analysed for all companies on a daily basis under several scenarios including stress scenarios and then compared to the set limits. The results will be generated automatically in the form of reports and disseminated within the companies and group reports will be compiled automatically on a daily basis by FlexFinance Analytix Liquidity Reporting.

The SOA architecture of this software solution allows easy and cost efficient integration into the existing risk environment at Nord LB Luxembourg. Existing systems and structures can be incorporated into the new liquidity management component without difficulty because of its open architecture.

Fabrizio Romano, region manager at Fernbach, says: “With our new Analytix solution, we can provide a powerful and flexible framework for risk modelling which banks such as Nord LB Luxembourg can use to easily create and directly analyse risk models for their business activities. This is instrumental in providing sufficient ‘internal capital’ to cover all essential risks. By opting for the new software, Nord LB is well equipped for the future and can react quickly to changes in internal management, to new corporate requirements as well as new regulatory approaches.”

Alexander Gröling, head of risk management at Nord LB Luxembourg, says: “We have been working with Fernbach for a few years now. We decided to buy the new risk management solution, to optimise liquidity reporting processes, minimise operational risk and remain competitive, particularly during this financial crisis. Our vision is to provide reports according to the logic described above also for other risk components.”