Dubai Bank, a UAE-based Islamic financial services firm, has selected Fernbach-Software's Basel II credit risk management solution to meet the regulatory requirements of Central Bank of the UAE.

The project will provide Dubai Bank with a solution including the regulatory calculation and reporting engine, Limit Reporting, Rating, PD-Estimation, LGD-/EAD-Estimation, and Stress Testing. The solution covers the Islamic products portfolio of Dubai Bank.

Working with regional partner Intertec Systems, Fernbach implements all FlexFinance Basel II components to ensure total automation of all processes, calculations and reports, as well as FlexFinance Analytix as platform for individual modelling and reporting.

FlexFinance Basel II delivers UAE-compliant regulatory calculations and reporting for all regulatory approaches. The engine covers measuring, controlling, management and mitigation of all risk types.

FlexFinance Analytix is a flexible platform for risk modeling with which the bank can develop its own risk infrastructure, specific to its business. The platform enables the bank to adapt to the changing supervisory landscape and provides an overview of the internal risk measurement process. The Fernbach solution combines standard software with risk modeling tailored to the bank’s individual needs.

Faizal Eledath, chief information officer at Dubai Bank, said: “Fernbach has emerged as our number one choice. The extensive range of products and services, the outstanding expertise in the risk area and the local presence the company established with their partner, Intertec Systems, completely convinced us. The SOA architecture of the FlexFinance solution means the software package can be seamlessly and efficiently be integrated into our existing IT infrastructure.”

Paul Rothenberger, managing director EMEA, Fernbach-Software, said: “The project, which includes two of our main risk management components, will support Dubai Bank in implementing automatic management and reporting processes in line with its banking supervisor’s guidelines. FlexFinance Analytix leverages the IT investments in existing systems and supports Dubai Bank in benefiting from the alignment of its existing risk management practices with increasingly complex Basel II requirements.”