News & Events
Krung Thai Bank implements Financial Studio IAS/IFRS
Bangkok – 15 November 2011. Financial Architects (FinArch), the market leading vendor for integrated Finance and Risk software solutions, is pleased to announce that Krung Thai Bank has selected its flagship Financial Studio to address Bank of Thailand (BOT) IAS 39 requirements.
Krung Thai Bank Public Company Limited (“Krung Thai Bank”) decided to implement the packaged IFRS solution to achieve timely compliance with Bank of Thailand (BOT) IAS 39 date lines. “IAS 39: Financial Instruments: Recognition and Measurement” is a measure of instrument by the International Accounting Standards Board (IASB) which sets out requirements and rules for recognition, de-recognition (removal) and measurement of all monetary assets and liabilities, derivatives and equity investments. The guideline improves the transparency and provides a buffer against impaired assets, significantly strengthening the banking sector.
Krung Thai Bank procured FinArch’s proven IAS/IFRS packaged software solution after an intensive vendor selection process. The bank, together with FinArch and its Thai Distributor, YIP IN TSOI is currently in the process of project implementation.
FinArch’s IAS/IFRS solution, part of the company’s flagship Financial Studio, addresses BOT IAS39 requirements by taking in all financial transactions, generating cash flows, calculating the IFRS valuation, generating the postings, and feeding the resulting entries back to the bank’s main general ledger. As such, FinArch’s solution meets the bank’s challenges by providing an integrated “event to disclosure” solution, from transaction to BOT IAS 39 regulatory report. Automation, reduction of manual intervention and reconciliations, faster closing effort, and a solid audit trail are some of the solution’s key features. The implementation of the system is conducted jointly by FinArch and its distributor in Thailand, YIP IN TSOI Company Limited.
Khun Danai Wangsiri, Vice President of FSI at YIP IN TSOI, states: “We are privileged to have the opportunity to be FinArch’s distributor in Thailand. We have many partnerships with foreign vendors and none is more committed than FinArch. This first successful assignment in Thailand demonstrates the synergy of leveraging the strengths of both organisations to better serve the interest of Krung Thai Bank.”
“Krung Thai Bank, the second financial institution by total asset size in Thailand, will be the leader and example for the entire banking community in Thailand,” Jeff Tan, Vice President for APAC at FinArch, comments. “Preparing for BOT IAS 39/IFRS is the wisest strategic decision not only for regulatory purposes but for the bank’s internal purposes: it increases transparency and maximises returns on their capitalization.” He adds: “In the coming years, financial institutions will face heightened pressure from upcoming new regulations, like IFRS9, ALM, Liquidity Risk, and Basel III. With a parameterised solution like Financial Studio, Krung Thai Bank gets a head start as new deadlines approach.”
Financial Studio IAS/IFRS has been implemented by a large number of banks and financial institutions worldwide. It is generally coupled with FinArch’s multi-GAAP general ledger, as well as with FinArch’s Compliance solution to report to the local regulator. FinArch’s IFRS solution is also frequently integrated with FinArch’s Basel solution to calculate the capital adequacy requirements, and with Financial Studio ALM to manage the Interest Rate Risk and the Liquidity Risk of their bank. The integration of this suite of solutions in Financial Studio facilitates a rapid response to the regulatory and business changes in the years ahead.
With Financial Studio, FinArch is considered Market Leader for integrated Risk & Finance for the financial services industry - testimony to the current demand in the market for its solutions, and not least for IAS/IFRS. This clearly underpins the need for convergence between risk and accounting functionality. Deployed by some of the largest international banks in the world, Financial Studio is thus rapidly becoming the solution of choice for many banks world-wide, which choose to effect strategic financial transformation in a component based, minimal risk and business justified manner.
For more details, please contact:
Press Office
Financial Architects NV
Verlorenbroodstraat 122
B-9820 Ghent
Belgium
tel: +32 9 272 6410
email: press.office@finarch.com
About Krung Thai Bank
Krung Thai Bank Public Company Limited is a Thailand-based financial institution engaged in commercial banking. The financial institution provides deposit services, consumer loan services, commercial loan services and credit card services. Headquartered in Bangkok, the financial institution operates over 700 branches throughout Thailand and overseas branches in Los Angeles, Phnom Penh, Kunming, Vientiane, Singapore, Mumbai and Siem Reap. As of December 31, 2009, the financial institution has 7 subsidiaries, namely Krung Thai Legal Services Co., Ltd., Krung Thai General Business Services Co., Ltd., Krung Thai Asset Management Pcl., Krung Thai Computer Services Co., Ltd., KTB Leasing Co., Ltd. and KTB Advisory Co., Ltd.
About Yip In Tsoi
For over 40 years, Yip In Tsoi & Co., Ltd. has accumulated experience and site references in development, integration, support, and customization of Information Technology in Thailand. Our success comes from the expertise and dedication of over 500 IT professionals who regularly implement and deliver projects in accordance with international standards and best Practices. Today, Yip In Tsoi & Co., Ltd. is not only products and services provider, but also a leading Total IT Solutions Provider, which includes systems and network designs, installation, customization, operations and maintenance of complete IT System Solutions. In addition, Yip In Tsoi & Co., Ltd. is committed to provide a wide variety of additional services to meet specific customer requirements through the joint force of world class quality partnerships.
About FinArch
Financial Architects NV (FinArch), with offices in the major financial centers worldwide, is a global value leader in providing a new generation of financial management software. FinArch provides a unique blend of domain expertise, operational services, and technology solutions that accelerate and facilitate financial institutions’ ambition to implement a cost effective and reliable financial management platform.
With its flagship Financial Studio, FinArch has been positioned as Market Leader in integrated risk and finance solutions. With its highly customisable modules and scalable database, Financial Studio brings together in a single application environment the tools banks need to manage, measure, and report all their financial activities. The integrated approach of the different modules (IAS/IFRS, Sub ledger, General Ledger, Trading Ledger, Product Control, Liquidity Risk, ALM, Basel II & III, E-Cap, regulatory reporting…) guarantees economies of scale and ease of implementation. A suite of generic, or foundation, modules underpin the power and security of the Financial Studio FRP solution.
www.finarch.com
www.ifrsforbanks.com
