Rockall Technologies Selected by Federal Home Loan Bank of Des Moines
-Rockall to deliver automated solution to enhance collateral management operations-
Dublin, Ireland and Charlotte, North Carolina, February 4, 2009 – Rockall Technologies, a global provider of expert collateral management solutions for the financial services industry, today announced Federal Home Loan Bank of Des Moines (FHLB Des Moines) has selected the company's unique solution to enhance its collateral monitoring capabilities. FHLB Des Moines will implement Rockall’s Systematic Tracking of Collateral (STOC) product to allow real-time management of multiple types of collateral pledged by its borrowing members. The product is singularly able to provide an enterprise-wide operational capability to value, monitor and manage underlying collateral exposures allowing institutions to rigorously control risk while maximising lending potential.
Commenting on the news, Luke Nestor, CEO, of Rockall, noted: “This announcement represents the sixth Federal Home Loan Bank that has acquired the Rockall solution. These institutions consider the implementation of systematic controls for collateral management as central to their credit limit management and risk mitigation strategies. We are seeing significant global interest in our product as institutions confront the challenge of lending the maximum allowable funds while complying with demanding collateral requirements that can be constantly and precisely monitored”.
FHLB Des Moines selected the Rockall solution following a methodical evaluation. The Bank especially liked the solution's ability to actively manage a portfolio of mixed whole loan and securities collateral, along with its seamless integration with other banking systems, securities custodians and market pricing systems. Rockall clearly demonstrated the system’s ability to automatically import data and perform complex calculations so that lending positions can be derived accurately and immediately. Also demonstrated was the system’s real-time detection of exceptions to risk policy and the instantaneous generation and routing of alerts. Moreover the system was shown to have built-in inquiry capabilities and prescribed best practice workflow that guides the user to an expeditious resolution of exceptions such as out-of-margin conditions.
Other features the Bank found attractive include:
- The STOC solution automates the management, tracking and valuation of liquid and whole loan collateral. Liquid collateral and loan assets are analyzed for eligibility based on predetermined business policies, valued via multiple market sources and haircuts are applied.
- The STOC solution provides state-of-the-art functionality to allow the bank to minimize risk and at the same time provide a more efficient service. At FHLB Des Moines, this means a more attractive all-in cost of borrowing and an enhancement to the value of FHLB membership.
- Rockall's system currently has over 5,000 end users worldwide managing more than a trillion dollars of collateral. In addition Rockall has 100% client reference-ability including a robust user base in the United States.
According to Marc Johnson, Vice President and Director of Collateral Management at FHLB Des Moines, “Our first priority was to choose a solution that was flexible enough to meet our specific institutional criteria well into the future and to ensure we can provide the best service to our members at the least possible cost. While Rockall certainly benefited from having other FHLB clients, we choose the company primarily because they proved their people were clear experts in this domain, they had a true product that stood out, they had a track record of successful delivery, and most importantly they had very impressive client references. We now look forward to joining forces with Rockall and its client community to improve the sharing of experiences and best practices to enhance efficiencies in this vital function within the industry.”
About Federal Home Loan of Des Moines
The Federal Home Loan Bank of Des Moines is a wholesale cooperative bank that provides low-cost short and long-term funding and community lending to more than 1,200 members, including commercial banks, saving institutions, credit unions and insurance companies. The Bank is wholly owned by its members and receives no taxpayer funding. The Des Moines Bank serves Iowa, Minnesota, Missouri, North Dakota and South Dakota and is one of twelve regional Banks that make up the Federal Home Loan Bank System.
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