HF improves its Asset Liability Management system

- To better manage ALM risk incurred by increased market volatility and diversified asset and liability structures -

Housing & Finance (HF, CEO Joo-jae Lim) announced on September 13, 2010 that its Asset Liability Management (ALM) system has been revamped for more accurate measurements and efficient management of interest rates and liquidity risks.

The ALM system upgrade was carried out in association with CMPR, taking approximately eight months for completion. The independently developed Bogeumjari Loan cash flow calculation engine, which reflects customer behavior models including the early redemption of loans, was added to the existing OFSA system. A stress testing function was also included to gauge the impact of extreme yet plausible events.

Due to the launch of the system, HF is now able to provide more comprehensive asset and liability management services by more accurately identifying future cash flows of assets and liabilities and securing appropriate liquidity accordingly.

Furthermore, the system is expected to contribute to not only decreasing the interest rate of the Bogeumjari Loan but also achieving business stability and maximizing profitability through responding to uncertainties affecting the business environment in a preemptive manner.