Ambit BancWare Regulatory & Economic Capital

Given the extreme volatility in the financial markets at the present time, capital reserves have taken on major urgency in the minds of risk managers. The current liquidity crisis in the credit markets is a result of poor risk management strategies, especially that concerning capital reserves.

Effective risk and capital management can provide objective and quantifiable answers to critical business questions. Many banks have chosen to evolve their risk and capital management practices to adopt current best practices. Basel II compliance implies the ability to identify, generate, track and report on risk-related data in an integrated manner with full transparency and audit readiness.

SunGard can help. SunGard’s Ambit BancWare Regulatory and Economic Capital Management helps implement Basel II projects. Ambit BancWare Regulatory and Economic Capital Management also combines market, credit, operational, and ALM components with economic capital analytics, to provide a complete picture of the bank’s risk profile and plan of action.

Features

  • Includes powerful “What-if” analysis features with graphical reporting
  • Analyzes the risk profile associated with each type of risk and incorporates the correlations across different risk types to determine economic capital
  • Facilitates the processing of calculations, including Basel modeling for risk-weighted assets, economic and regulatory capital, risk capital ratios and stress testing
  • Supports all asset classes and all credit and operational risk approaches
  • Provides PD/LGD/EAD estimation, regulatory capital calculations and reporting
  • Provides approaches to regulatory credit risk and operational risk quantitative 'Op-VaR' analysis, supporting the calculation of AMA capital requirements

Benefits

  • Drives ROE decision-making by providing a view of the capital and performance consequences of capital allocation strategies, including acquisitions and divestitures
  • Introduces risk-adjusted performance measures in day-to-day pricing, customer relationship management and limit setting activities
  • Perform macro and micro-economic stress testing without additional programming
  • Delivers reporting tools to meet Basel compliance