The China Construction Bank (CCB) has selected Algorithmics to help it measure and manage its international credit exposure and credit limits. It is a landmark deal for the Chinese banking industry as it moves towards adopting international risk management standards.

CCB is aiming to expand its international business in derivative products in order to use its capital most effectively. To achieve this it came to Algorithmics for exposure mitigation and credit limit management technology. CCB has purchased Algo Credit Exposure and Algo Credit Limits to assist in measuring and managing its counterparty credit risk, as well as viewing and managing consolidated risk exposure across the whole enterprise. It will also be able to ‘drill-down’ to view exposure to a single customer or a particular industry, product or geographic market.

Michael Zerbs, President and COO at Algorithmics said “This is a first in the Chinese market and the credit exposure and limit solutions we are implementing are likely to be closely watched by all the Chinese banks that are considering moving into the process of managing their international credit exposures and limits.”

Algorithmics has established local resources in China to provide clients with a unique level of international financial risk management service, and has established the ‘Algo China Laboratory’ together with its Chinese partner, the Beijing Great Road System Integration Co.,Ltd..

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