Basel III : The opportunity to get it right
The Basel III regime - introduced by the Basel Committee on Banking Supervision following the financial crisis - outlines new regulatory standards on capital and liquidity for banks across the world.
Basel III has had a significant impact across the industry as banks not only have to achieve technical compliance with the new rules and ratios but they also have to realign their business models in order to succeed in the new regime.
Several measures must be implemented by the beginning of 2013, including new regulations for counterparty credit risk and minimum core Tier 1 ratios, and for this reason many firms are making Basel III compliance an immediate priority.
Our Basel III Solution
Our fully integrated regulatory reporting and risk analytics capabilities form the basis of our comprehensive Basel III solution. The solution covers all of the elements outlined in the three pillars of Basel III: standardized risk calculation, supervisory review process and public disclosure reporting.
Our Regulatory Update Service - which is maintained by our dedicated team of in-house experts covering over 50 countries - gives firms peace of mind that they are up-to-date and compliant with national discretions and local interpretations of regulatory rules, including Basel III.
Precise Capital and Liquidity Ratio Calculation
- Calculate new capital requirements including the new capital charge for Credit Valuation Adjustments (CVA)
- Determine the required capital conservation buffer and countercyclical buffer
- Analyse the non-risk based leverage ratio
- Evaluate the capital requirement for counterparty credit risk using stressed inputs
- Assess all required information for the LCR and NSFR global metrics for funding liquidity
Comprehensive Risk Management and Review Processes
- Perform stress-testing and scenario analyses involving views across multiple pillars of risk
- Utilize a comprehensive range of market risk measures including value exposure, Value-at-Risk, back testing, and stress testing
- Gain an integrated view of data to take scenarios for the potential exposure calculation directly from the market risk scenario
- Deliver single name and portfolio credit risk analysis via assessment of current and potential exposure, expected loss, and credit Value-at-Risk
- Assess economic capital to satisfy ICAAP requirements
Efficient and Accurate Public Disclosure Reporting
- Benefit from a single data source to ensure consistent reporting
- Meet international and specific regulatory requirements in over 50 countries
- Produce reports in the format required by regulators and senior management
- Receive regulatory updates to keep current with changes affecting reporting requirements
- Meet international and local reporting standards and includes templates for COREP, FINREP, and MIFID reporting