France-based performance management systems vendor Almonde has launched a credit performance system that enables banks to comply with the forthcoming Basel II regulations.
The vendor says the Almonde Credit system, which is part of the Almonde 4 product suite, assesses a bank's credit exposures for both performance and regulatory purposes. The package comprises of five modules that can help financial institutions calculate the necessary exposure figures under the Basal II Standard, IRB Foundation and IRB Advanced reporting categories.
In addition, banks can use the calculations to improve margin analysis and establish the foundations for an economic value framework that provides an overview of performance across the enterprise. The vendor says the package also reduces Basal II project risk by allowing risk managers to build a solution and easily clean and access data.
Ben Salama, CEO of Almonde, says while Basal II is seen as a major burden for financial institutions, it also presents them with an opportunity to improve performance management practices: "Once banks have complied with the new credit reporting standards they will be able to assess credit and risk far better than ever before."
He adds that the data gathered and analysed to determine the credit ratings can be used to assess the performance of products, customers and business units.
"It will make it possible for banks to expand their product offerings to respond to specific client needs and will enable them to launch more profitable product lines based on the performance of existing products," says Salama.