Risk management firm signs deal with Austrian bank BAWAG P.S.K. for collateral management solution.
Lombard Risk Management, a London-based provider of financial services and reporting solutions, has announced that BAWAG P.S.K. (Bank für Arbeit und Wirtschaft und Österreichische Postsparkasse Aktiengesellschaft), one of the largest banks in Austria with assets of €41 billion, will begin using its Colline collateral management and central counterparty clearing (CCP) solution later this year.
BAWAG is traditionally a retail bank; however the deal is reflective of its increased foray into collateralized trading activity, which requires stronger credit risk mitigation as well as increased reporting as required by European regulators. Colline, the partners say, will satisfy each of those requirements, and is implementable for use across OTC derivatives, repos, and securities lending products.
"Automating the management of our collateralized business will enable us to use collateral most efficiently and provide our clients with an accurate and reliable service. Plus, BAWAG P.S.K. will benefit from better risk management and enhanced regulatory compliance," says Wolfgang Hanzl, Head of Operations at BAWAG P.S.K.
For Lombard Risk, the signing represents continued growth in Central Europe. "This is now our third Colline implementation in Vienna, and part of an even larger client base across the German-speaking region, where we see more future growth in the coming years," notes Martin Heraghty, the firm's sales director for EMEA.
The bank says it will implement the solution by September.