Benefits
Driving Algorithmics' Basel ll solution is a flexible and comprehensive software product, Algo Credit Regulatory Capital, which supports fully optimized credit mitigation and all recognized regulatory capital approaches, resulting in reduced consolidated exposure and lower cost of compliance.
Provides consistent Basel II calculations
Algo Credit Regulatory Capital provides banks with the flexibility to handle complex corporate structures and credit relationships, including the allocation of undrawn amounts and credit mitigants across complex credit facility structures.
Supports Pillar 1 calculations across multiple jurisdictions
Algo Credit Regulatory Capital can be configured to perform Basel II calculations across multiple national regulatory jurisdictions, offering a single solution for computing regulatory capital requirements at each subsidiary and at each level of consolidation in compliance with appropriate home or host regulations.
Enables evolution in regulatory capital approach
Algo Credit Regulatory Capital enables banks to apply more advanced Basel II approaches over time as a bank's risk management systems and practices meet regulatory standards and expectations.
Addresses Basel II data management challenges
Algo Credit Regulatory Capital contains regulatory capital data management tools that enable banks to manage the data inputs at an appropriate level of granularity to feed into Basel II capital calculations.
Supports regulatory and managerial reporting
Algo Credit Regulatory Capital provides a user-friendly system that addresses all aspects of calculating Basel II figures to support both regulatory and managerial reports.
Optimizes credit risk mitigation
In order to reduce consolidated exposures, different approaches for banking, trading and retail books are required. Algo Credit Regulatory Capital supports and optimizes all types of credit mitigants, while respecting all applicable rules.
Achieves regulatory auditability
Algo Credit Regulatory Capital offers transparency at all levels of calculation, including input parameters, intermediate calculations and reported numbers, allowing easy investigation into how the numbers were calculated.
Integrates with economic capital
Algo Credit Regulatory Capital shares a common data architecture with other Algorithmics solutions, and can be optionally integrated with the credit process workflow, limits and economic capital capabilities of Algo Credit Economic Capital.
Related Downloads
Algo Credit Pillar 2 Fact Sheet
Comprehensive, streamlined approach for banks moving towards Pillar 2 credit capital compliance
Integrated Risk Management: Market and Credit Risks
Credit Regulatory Capital Management for Banks Brochure
Featured Case Study
Value-Based Management
South African bank Nedbank implements a comprehensive market and credit risk management infrastructure.