Credit Line Optimization
Credit Line Optimization is an often overlooked way for banks to limit losses from defaulting borrowers. Banks deal with difficult decisions which center around the balance of providing additional lines of credit to prevent default and raising their potential exposure at default.
Banks need a line monitoring system which ties directly to borrower’s default characteristics to better access and manage outstanding credit lines.
SunGard can help. SunGard’s Ambit Risk Consulting provides a comprehensive solution to credit line optimization.
Features
- Analyze customer behavior prior to default along with financial and non-financial information to develop predictive models which allows banks to better manage outstanding credit lines
- Provide early warning indicators, which can be dynamically applied in credit line management, for troubled accounts
Benefits
- Helps identify troubled accounts and understand the key drivers that signal when to change credit lines for a new or existing customer for optimizing potential future exposures