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Global software firm Misys has expanded its market in the
Philippines amid intense spending by local banks on risk management
solutions that will upgrade their systems to International
Accounting Standards (IAS), the company said Friday.
Graeme Berdsell, managing director, said Misys
has 80-percent market share in providing the local banking industry
with treasury and capital solutions.
“There is increasing demand [of the solutions]
due to the sophistication of risk management,” Berdsell said.
He said Philippine banks are early adapters of
risk management. Under IAS 39, banks are mandated to recognize and
measure derivative trades.
He said the shift to IAS 39 presents an
opportunity for local industry players to identify and manage their
risk operations more efficiently.
The adoption of IAS is expected to attract
inflows of foreign investments and support the development of
capital markets by increasing the use of hedging instruments. It is
also seen to increase banks’ earnings volatility due to the
requirement of fair value accounting, more comprehensive disclosures
on financial instruments, and new accounting treatment for real and
other properties owned and acquired.
The Bangko Sentral ng Pilipinas initially
required local banks to adopt IAS 39, which could give banks
competitive boosts as it would bring about greater transparency in
the financial system.
Besides banks, Berdsell said Misys might tap the
large corporate treasuries to further expand its local market.
“Philippines is an important market for us.
We’ve been here for 10 years. We’re looking for corporate
treasuries, such treasuries delving with structured products,” he
said.
-- Maricel E. Burgonio
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