The solution will provide financial institutions with a complete and flexible set of analytics and metrics that enable compliance with the risk management requirements as specified by the Bank for International Settlements (BIS), Switzerland.
The Basel II norms for capital adequacy, aims to reduce risk in the financial system by closely aligning capital requirements to the underlying credit, market and operational risks; executing new supervisory review processes and improving market disclosure. Banks that embrace the Basel II norms will be better geared to optimize capital allocation and improve their competitiveness in the market place.
“Banks are looking for solutions that can address the evolving nature of risk management trends in the context of local banking practices” explains S Ramakrishnan, CEO of Reveleus “This strategy brings together the capabilities of our global and local partners which are the crucial legs of the stool that can solve these business needs. Our solution currently focuses on BIS guidelines applicable to the rest of the world. However, we have plans to expand into areas unique to Islamic Banking, covering instruments which follow the Shariah principles such as Al Mudarabah and Al Musharaka, Exposure Categorizations for such instruments to Basel II categories and other similar issues as the Accord evolves”.
“Basel II compliance is seen as the next big challenge for the Banking industry in the Middle East. Given the momentum in Europe and US, we estimate that before the end of the decade, all Middle East banks would need to invest in systems and processes to ensure that they are in step with global practices” comments Terry Bradigan, Partner KPMG.
Middle Eastern banks are not part of the 13 Basel Committee member countries that will be implementing the framework by the end of 2007. However there is significant pressure within the international community, for countries outside of the committee to fulfill the Basel II requirements. In a recent study, conducted by the Bank of International Settlements (BIS) of 107 countries outside of the Basel Committee’s jurisdiction; 88 showed at intention to adopt Basel II between 2007 -2009.
Reuters (RTR:LSE), the global information company, and Reveleus previously announced an alliance in North America that will deliver an enterprise-wide view of risk by bringing together Reuters expertise in the trading books and Reveleus’ capability in analytical applications for the banking book. The resultant joint solution spans credit, market and operational risk and enables monitoring, reporting and limits management across the banking and trading books of the institution.
Reveleus has an alliance with HP to provide Banks in the Middle East with a comprehensive enterprise-wide risk management solution on a scalable platform that is high on performance and low on cost. HP’s alliance with Reveleus offers an enterprise-wide risk management solution on a robust and scalable platform to help banks in their Basel II compliance efforts.
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