Europe Arab Bank (EAB) has selected Reval to help automate and streamline its IFRS9 hedge accounting and compliance systems internally and for its treasury clients.
The treasury management system (TMS) risk module implementation from Reval will enable immediate compliance with the international accounting standard (IAS) 39 stipulations and scale to the incoming IFRS9 rules covering hedge accounting.
According to Peter Reynolds, head of region at Reval, the technology solution will enable EAB to keep pace with the incoming regulatory change and the update is needed because “hedge accounting is becoming increasingly important and more in alignment with financial risk management strategies”.
For Mohammad Shoaib Memon, chief financial officer (CFO) at EAB, the installation will help to increase operational efficiency, reduce income statement volatility and assure on-going compliance, which is important as the bank is confronted with increasing hedge volumes, profit and loss (P&L) volatility and the [changing] regulatory requirements under IAS 39 and upcoming IFRS 9. “EAB decided to replace its manual processes and disparate systems with a single Software-as-a-Service (SaaS) solution for hedge accounting for this reason,” he added.
Sentiment in the financial services sector deteriorated in the three months to September, as firms digested the challenges of lower interest rates and the uncertainty caused by the vote to leave the European Union (EU), according to the latest CBI/PwC Financial Services Survey.
However, a London summit on the industry’s introduction of the technology cautions that testing and acceptance are still at an early stage and firms should proceed with caution.
The proposals of both US presidential candidates could shake up operating conditions in several sectors, reports the credit ratings agency.
The Danish shipping and oil conglomerate confirmed that it will separate its businesses into stand-alone transport and energy divisions.