Basel III | Wolters Kluwer Financial Services Summix
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  • Basel III

    Our Basel III solution allows calculation of risk and regulatory metrics, based on a single integrated set of data and using underlying state-of-the-art calculators, enabling firms to manage risk and adhere to supervisory requirements in an integrated manner.

    Basel III demands that banks have global transparency of their risk across the enterprise; they must be able to understand and articulate their appetite for it, demonstrate control of it and regularly report on it, to the regulators and the business.

    Although unarguably complex, especially for those operating in multiple territories, becoming Basel III compliant is a unique opportunity – to gain a new level of mission-critical insight, and to put risk and reporting at the very core of business strategy, where it undoubtedly will serve the business better.

    The changes are far reaching, and include:

    • Increases in the amount of capital needed to conduct most types of business;
    • Better quality capital must be used to support financial firms;
    • Mandating the retention of liquid assets;
    • The inclusion of a leverage ratio to limit gross lending against a firm’s capital;
    • New capital buffers to be held over and above minimum capital requirements;
    • Comprehensive stress-testing frameworks applying to both capital and liquidity and including the concept of reverse stress testing;
    • Regulators taking a specific interest in macro-prudential issues;
    • A large increase in the volume and scope of reporting (both internally and to regulators).

    Our Basel III solution has been designed to address these issues. It is based on a modular, integrated data architecture that uniquely describes each obligation and transaction that the firm has entered into. Using this information, the solution builds up the required information according to the prevailing regulatory rules to correctly populate the required returns, reports and templates.

    In addition, because the data is captured in detail, we can apply our advanced risk engine to the data, creating industry stress and scenario testing and reporting to the standard needed to meet the highest regulatory requirements.

    Wolters Kluwer Financial Services provides a Basel III solution leveraging our experience and expertise. The solution allows calculation of risk and regulatory metrics, based on a single integrated set of data and using underlying state-of-the-art calculators, enabling firms to manage risk and adhere to supervisory requirements in an integrated manner.

    Basel III

    Pillar 1

    • Credit Risk (Standardized, FIRB and AIRB)
    • Market Risk (Standardized, Internal Model VaR)
    • Liquidity Risk (including LCR, NSFR, local measures)
    • Operational Risk
    • CVA & Wrong Way Risk
    • Forward Looking Capital structure and buffers

    Pillar 2

    • Interest Rate Risk in the Banking Book
    • Economic Capital modeling
    • Integrated Stress Testing
    • Contingency Planning

    Pillar 3

    • Integrated management reporting
    • Standard Pillar III reports
    • Fully auditable data process

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