IQ Financial Systems has developed and implemented a credit risk template within its commercial lending system Loan IQ to address the data gathering requirements of the forthcoming Basel II regulations.
The Basel II application is already in use at Germany's Commerzbank and is being reviewed by other IQ clients.
The solution allows users to define and capture complete sets of source data within Loan IQ by utilising additional embedded for holding data relating to collateral items and/or holdings.
The vendor says this approach allows users to collect information for internal credit managers, ongoing borrower compliance and regulatory reporting without touching ancillary systems.
Matthias Halbritter, global Loan IQ product manager, Commerzbank, says: "These additional information templates for collateral are now giving us the opportunity to gather and historicise necessary data to comply with the internal ratings based approach of the Basel II Capital Accord."
Loan IQ collects data and applies statistical calculations to derive internal risk ratings schemes.