Bank SinoPac Adopts Bloomberg MARS Market Risk to Accelerate FRTB Implementation

Bank SinoPac (“SinoPac”), a leading financial institution in Taiwan and a wholly owned subsidiary of SinoPac Holdings, has adopted Bloomberg’s Multi-Asset Risk System (MARS) Market Risk module to support its implementation of the latest Basel III banking regulation. The addition of MARS Market Risk expands the organization’s relationship with Bloomberg. SinoPac Securities, another subsidiary of Sinopac Holdings, was the first in the group to adopt Bloomberg’s MARS Front Office. Use of MARS Market Risk enables SinoPac to create a seamless risk and data workflow between the bank’s front office, market risk and ALM (Asset and Liability Management) teams to prepare for the Fundamental Review of Trading Bank (FRTB) reporting that is required by Taiwan and Hong Kong regulators.

MARS Market Risk has enabled SinoPac to fully model its multi asset portfolios, sophisticated deals such as cash structured products and exotic OTC structured derivatives. Sensitivities are calculated under FRTB standard approach that are in compliance with Taiwan and Hong Kong Monetary Authority (HKMA) jurisdiction rules.

FRTB, which is part of Basel III, and issued by the Basel Committee for Banking Supervision was designed to revamp how banks across the globe approach market risk capital across their various trading lines of business. The HKMA, in its latest consultation with the banking industry, has adjusted its target effective dates of reporting of market risk and credit valuation adjustment risk to January 1, 2024 (revised from 1 July 2023). Taiwan regulators continue to refine its guidance for the legislation of FRTB.

“We are pleased to be supporting Bank SinoPac as they expand their risk and regulatory reporting capabilities across the region,” said Dharrini Bala Gadiyaram, Global Head of Risk Products at Bloomberg. “Investing in technology requires long-term preparation and as regulatory deadlines approach, the ability to bolt on risk capabilities is a key aspect of Bloomberg’s solutions. We look forward to supporting many more banks across the region with their FRTB reporting needs and to manage their risk with volatility in the sector certainly becoming more acute.”

She added, “Bank Sinopac’s FRTB project required a rigorous approach to align front, middle and back office including related risk and finance functions. Our solutions were able to scale with the firm’s needs and enabled Bank Sinopac to be fully compliant with minimal disruption to existing operations.”

Bloomberg’s suite of MARS risk solutions, which are delivered on the Bloomberg Terminal and via APIs, provide risk analytics for cash and derivatives securities. The suite helps traders, portfolio and risk managers manage front office risk, market risk, XVA counterparty risk, credit risk, hedge accounting, as well as collateral and SIMM requirements – all by using a common pricing and data library, providing consistency from front to back. MARS Front Office supports firms with intraday valuation and on-demand risk analytics, advanced scenario and stress test capabilities as well projected cashflows and “PnL Explain” reports.

Bloomberg was recently recognized across a range of risk management and risk transfer solutions at the 2023 Risk Market Technology Awards with wins for Market Liquidity Risk Product of the year, Pricing and Analytics: Structured Products/Cross-Asset, and Best Support for Risk Free Rates. In addition, Bloomberg MARS has previously been recognized by Waters Technology for the Best Sell-side Market Risk Product category.

About Bank SinoPac

Bank SinoPac is a wholly owned subsidiary of SinoPac Holdings Co., Ltd. (SinoPac Holdings) and was created in the merger of equals between Bank SinoPac under SinoPac Holdings and International Bank of Taipei on November 13, 2006. Bank SinoPac provides the best financial services to its customers with a comprehensive business network and highly innovative product lines. The Bank is striving to realize the vision of “Together, a better life,” to make Bank SinoPac the leading brand among Chinese-speaking financial institutions.

As of the end of 2021, Bank SinoPac and its subsidiaries had 6,347 employees; their paid-in capital reached NT$86.9 billion and assets amounted Corporate Profile 11 to NT$2.1695 trillion. Bank SinoPac has 22 divisions and one office. In addition to 125 domestic branches (including the Department of Business) and an Offshore Banking Unit, Bank SinoPac has multiple overseas branches, including branches in Hong Kong, Kowloon, Macau, Los Angeles, and Ho Chi Minh City, as well as a Vietnam Representative Office. Bank SinoPac has also invested in subsidiaries, including SinoPac Insurance Brokers and Bank SinoPac (China), offering customers a full range of financial services through professional division of labor and diversified channels.

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