Credit Benchmark, in collaboration with Oliver Wyman, announced the launch of IRB Nexus, an innovative credit analytics solution that helps banks enhance regulatory compliance of their internal ratings-based (IRB) models, specifically for low- and no-default portfolios. IRB Nexus is Oliver Wyman’s modelling analytics powered by Credit Benchmark data. The solution helps financial institutions to more effectively validate their IRB models, maintain a competitive edge, and address regulatory requirements.
As banks adapt their IRB models to meet evolving global regulatory standards, many struggle to assess risk for low-default portfolios that lack extensive historical data. These portfolios, which may include funds, including alternative investment funds, and non-bank financial institutions are frequently monitored by global regulators due to their potential systemic impact. Without sufficient validation for these models, banks risk facing demands to increase capital reserves—a measure that can restrict lending capacity and hinder competitive positioning.
Also Read: Program Will Lend $10M to Detroit Minority Businesses
“IRB Nexus has the potential to be transformative for banks looking to significantly bolster their historical credit analytics data feeding their capital models,” said Cem Dedeaga, Partner at Oliver Wyman. “With Credit Benchmark’s aggregated data, we’re empowering risk officers with the insights needed to meet regulatory expectations while sustaining their lending potential.”
Michael Crumpler, CEO of Credit Benchmark, added, “We’re proud to bring our extensive dataset to IRB Nexus. By equipping financial institutions with critical data on low-default exposures, this collaboration enhances risk modeling for portfolios that traditionally lack sufficient information, fostering transparency and reliability in commercial credit assessments.”
Supported by a structured implementation process customized to each client’s portfolio, IRB Nexus easily integrates with the client’s IRB models.
SOURCE: Businesswire
