Basel II Credit Analytics

Credit Analysis

CreditBASELine can assist its clients understand the credit risk inherent in their loan portfolios in a BASEL II compliant way, which can then also assist in capital management. Expected Loss estimates, before and after haircuts and stress tests, can be developed at obligor level and rolled up to portfolio level to provide migration trends and risk profiles across portfolio dimensions.

Basel II

now more important than ever!

It is important that financial instituions use the methodologies contained in Basel II developments and those that are continually being introduced subsequent to Basel II to address more recent concerns.

This is not just a regulatory compliance issue. The methodologies being developed to address credit risk, capital management and liquidity issues, amongst others, represent valuable tools to financial institutions to better manage their risk profiles.

Risk Models

probability of default linkages.

Probability of default is used as one input in the calculation of Expected/ Unexpected Loss. For commercial portfolios feeds can be taken from external suppliers (eg Moody's RiskCalc) or developed from historical data maintained by the financial institution.

Credit BASELine and its partners can assist in the development of these estimates. The technology to process and store client financials and risk information can also be provided as required, being one component of the Credit BASELine risk management system.

Data Integration

use your data.

Stressed security levels against LGD and EL calcuations can be used to identify risk hot spots, whether geographic (by security or obligor), industry, obligor type etc.

We provide tools and methodologies to undertake such analyses.

Credit information can then be linked to other information sources to provide an integrated view of the client risk profile.

Reporting

information is only useful when disseminated in a structured way

CreditBASELine has a fully developed data warehouse, based on 'best practice' principles which it uses to structure and disseminate client portfolio and credit information.

CreditBASELine can assist clients in the development of report packages to give them a clear view on their credit analytics. Solutions can be developed using client business intelligence tools or using business intelligence tools provided by Credit Baseline, based on market leading products.

We are experienced developers of report packages suited for consumption by client senior management, ALCO and board.