Case Study: Turkish Economic Bank achieves accurate, scalable pricing and regulatory-ready risk analytics for 3,000 FX and interest-rate instruments with FINCAD

Turkish Economy Bank Selects FINCAD Analytics for FX and Interest Rate (IR) Options Pricing and Risk

Turkish Economy Bank (TEB) embarked on an asset-liability management (ALM) initiative and needed to calculate option prices and Greeks plus cash flows for inflation-indexed bonds. Their existing risk system could not price newer instruments such as caps/floors, digital caps/floors, cross-currency swaps and bond options, so they selected FINCAD and its FINCAD Analytics Suite for Developers to provide a best-of-breed, easily integrable valuation and risk solution.

FINCAD deployed FINCAD Analytics Suite (via its developer SDK) to generate prices and risk sensitivities for TEB’s FX and interest-rate options, enabling daily pricing of roughly 3,000 instruments. The solution went live quickly (over 25% of products configured in three months), allowed calculation of expected inflation rates and cash flows for inflation-indexed bonds, produced fair value, Greeks and probabilities for exotic products, and now feeds Basel III and BRSA reporting—improving accuracy, regulatory compliance and flexibility for future market or regulatory changes.

Turkish Economic Bank

Arzu Aksu

Project Manager