Changing Basel Landscape + Complex Risk Calculations + Dispersed Data and Models = Risk, Complexity, and Costs
AxiomSL’s solutions and reports on ControllerView ― powered by its extensible data dictionaries ― deliver a consistent, transparent, automated approach to capital and credit data management, calculation, and reporting.
Managing The Interdependencies Across Counterparties, Credit Risk Analytics, And Capital Reporting
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BASEL III | BASEL IV… | CRR2 | CRR3…
As financial institutions take their Basel journeys, AxiomSL is providing comprehensive solutions for current and evolving Basel and Capital Requirements Regulation (CRR) driven needs, including:
Credit Risk
The new credit risk framework includes two different methodologies with different sets of calculations.
Both methodologies and calculation sets – SA and Internal Ratings Based (IRB) – will need to be leveraged for efficient reporting, as well as for conforming with the output floor.
Furthermore, the framework for securitization has been rewritten, and will now involve increased complexity both in calculations and reports.
Output Floor
The output floor has been set at 72.5% of the standardized Risk-Weighted Assets (RWA).
This, combined with upcoming changes to RWA calculations will pose both methodological, optimization and reporting challenges for financial institutions.
A holistic data management and calculation process across an enterprise will be necessary to adequately address this.
FRTB
Operational and computational challenges will be created by the new market risk regime.
Improving Fundamental Review of the Trading Book (FRTB) capital requirements means that the application of Standard Approach (SA) rules will need to be consistent – with SA now applicable to all financial institutions – and achieving consistency across institutions will be complicated to achieve.
Margin Calculations
FINRA Rule 4210 defines initial and maintenance margin requirements on brokerage accounts
Treasury Reporting
U.S. Treasury requires the reporting of non-U.S. issued securities carried by the broker-dealer (TIC Reports)
Global Solutions for Basel and Capital Requirements
AxiomSL’s Robust Capabilities for Basel and Capital Requirements Regulation (CRR2/3)-Driven Regulatory Reporting
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