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Hong Kong (12 June, 2007) – SAS,
the global leader in business intelligence, is pleased to
announce that it has been selected by Dah Sing Group (Dah Sing)
as a strategic partner to implement the Internal Ratings-based (IRB)
approach according to the guidelines of the Banking (Capital)
Rules issued by the Hong Kong Monetary Authority (HKMA). Under
the agreement, Dah Sing Bank has engaged SAS to build an
enterprise-wide credit risk management data warehouse (RDW) and
to implement a credit risk management solution, to consolidate
all its credit risk related information and serve as a credit
risk measurement foundation for the bank.
Benefiting from SAS advanced credit risk analytics, Dah Sing can
enhance its credit risk measurement capability to capture,
measure and report on the specific risks of its hundreds of
thousands of retail banking customers, perform credit risk
analytics by calculating the probability of default, exposure at
default and loss given default.
Beyond Compliance: 360o View of Credit Risk
Dah Sing will rely on the SAS Data Warehousing solution to
manage complex data integration processes, ensuring data
integrity. The solution together with the SAS Credit Risk
Management solution will provide Dah Sing with a single view of
the credit status, behavioural pattern and risk level of its
customer. Benefits will extend well beyond just implementation
of the Basel II Capital Accord (Basel II).
“As a bank that focuses on the future, we view implementation of
Basel II as another step in our ongoing efforts to strengthen
our risk management capabilities,” said Derek Wong, the managing
director and the chief executive of Dah Sing Bank. “Basel II
implementation serves as a catalyst to promote our risk
management practices regarding risk methodology, data
management, reporting and monitoring. We believe this will
benefit not only the bank itself but also our customers and
investors.”
“Though financial institutions are adopting credit risk
management systems in response to the HKMA’s regulations and
industry standards, SAS helps our customers to go beyond
compliance and manage risk strategically through risk-based
performance management,” said Alex Wong, president of SAS
Greater China. “Thus, we are confident that Dah Sing will derive
significant business value from this initiative.”
SAS Proven Track Record and Excellent Consulting Service
A key factor in the decision was SAS proven track record in
assisting banks globally and in the local market in
implementation of Basel II.
“SAS has the expertise and experience of implementation of Basel
II locally to fulfil the HKMA’s requirement,” said Derek Wong.
“Additionally, for some years we have adopted several of SAS
analytics and business intelligence solutions. This has given us
great confidence in their consulting service – we find SAS
consultants very professional; they really know and understand
business intelligence, understand our concerns, and respond
quickly when we need them.”
Advanced Credit Risk Measurement Practice with Multiple
Payback
The IRB approach encourages the bank moving towards a more
extensive and sophisticated risk measurement practice. The SAS
solution which Dah Sing will adopt provides further insights
into the potential risk of loans and a more accurate calculation
of the risk-weighted assets for achieving the minimum capital
adequacy ratio and meeting the regulatory requirements – key
requirements of Basel II.
“The SAS solution will help us not only to enhance our credit
risk management, but also to improve the business strategies,
risk controls and capital allocation of Dah Sing, as there is
the potential to reduce our capital requirements,” said Derek
Wong.
Dah Sing will also benefit through a greater degree of risk
sensitivity at all stages of managing credit exposure – from
retention strategies, through limit setting and devising
risk-based pricing strategies, to loans.
Credit Risk Management Information Reporting will also be
automatic, more efficient and accurate. “We expect to see a
tremendous improvement in our timely understanding of credit
scoring and credit risk analysis, enabling us to make faster and
better business decisions,” said Derek Wong.
SAS Solutions Used Worldwide
Currently, more than 140 financial institutions are using SAS
for credit risk and operations risk management. SAS has
completed over 100 Basel II projects, including for Banca
Nazionale del Lavoro, one of Italy’s leading banking groups;
ERSTE Bank Group, a leading bank in Central Europe; Grupo
Santander, the eighth largest bank in the world by market
capitalisation; and Swedbank, one of the largest banking groups
in northern Europe. SAS was positioned by Gartner Inc. in the
leaders quadrant of the “Magic Quadrant of Basel II Software
Application 2006”.
About Dah Sing Group
The Dah Sing Group is a leading financial services group in Hong
Kong active in the banking and insurance markets. The Group
consists of two listed companies, Dah Sing Financial Holdings (“DSFH”)
and Dah Sing Banking Group (“DSBG”). The Dah Sing Group has
gained a reputation as one of the most progressive and
innovative financial services groups in the Hong Kong market,
and in 2004, the Group opened its first Mainland branch in
Shenzhen.
In addition to being the majority shareholder of DSBG, DSFH is
also active in the life and general insurance sectors. DSBG has
three banking subsidiaries including Dah Sing Bank and MEVAS
Bank in Hong Kong and Banco Comercial de Macau (BCM) in Macau,
and a securities trading company, as well as an offshore joint
venture private banking business with SG Hambros Bank.
About SAS
SAS is the leader in business intelligence software and
services. Customers at 42,000 sites use SAS software to improve
performance through insight into vast amounts of data, resulting
in faster, more accurate business decisions; more profitable
relationships with customers and suppliers; compliance with
governmental regulations; research breakthroughs; and better
products. Only SAS offers leading data integration, intelligence
storage, advanced analytics and business intelligence
applications within a comprehensive enterprise intelligence
platform. Since 1976, SAS has been giving customers around the
world THE POWER TO KNOW®. www.sas.com
SAS and all other SAS
Institute Inc. product or service names are registered
trademarks or trademarks of SAS Institute Inc. in the USA and
other countries. ® indicates USA registration. Other brand and
product names are trademarks of their respective companies. ©
2007
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