New Definition of Default for Credit Risk

Designed for risk and compliance professionals, Temenos’ New Definition of Default for Credit Risk solution helps financial institutions of all sizes reduce risk and improve profitability whilst safeguarding regulatory compliance.

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Why Temenos New Definition of Default for Credit Risk

 

A fully integrated modular solution to help firms address the challenges of complying with prudential rules for calculating capital adequacy within the broader context of credit risk management.

Comprises the framework to support the fundamental processes banks need to perform, whilst providing additional factors for assessing the credit risk of customers.

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Fully automated solution for Definition of Default

Fully automated workflow-driven process supporting the core infrastructure needed to support key components of multinational Definition of Default rules. Incorporating joint obligor creation and relationship groups, default assessment, and application of contagion between connected customers.

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Flexible rules-based approach to support single & multi-jurisdictional rules

Enables user configuration of the rules for monitoring days past due and the automatic calculation of default contagion between a defaulted obligor and its connected obligors. This is in line with regional regulations such as European Banking Authority guidelines and the Banking Commission of Central Africa credit risk rules.

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Replace manual processes and reduce costs of compliance

Remove inefficiencies associated with manual processing, helping you better serve your customers and reducing the headline costs associated with compliance processes.

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Leading-edge technology

Built on Temenos Core Banking, our solution provides scalable, best-in-class capabilities. This includes advanced API-first technology which empowers banks to innovate rapidly and connect to ecosystems, and enables developers to build their own connectivity or apps.

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Sophisticated solution to support compliance & enhance credit risk assessment

Extensive capabilities for creating the joint obligors within the structure required to assess default and monitor the contagion effect of a defaulted party on its related obligors in line with regulatory requirements. Provides additional capabilities for banks to assess credit risk of their customers through their associated relationships.

Key features of Temenos’ New Definition of Default for Credit Risk

Provides risk, compliance and back-office operations teams with an efficient, cost-effective process to support capital adequacy processes within the broader context of credit risk management.

Fully automated solution

Significantly reduces operational inefficiencies and costs associated with manual processes.

Flexible component-based implementation

Modular design enables “progressive renovation” by providing the option to implement in phases.

Comprehensive solution

Provides a configurable rules engine to support regional adaptations of Definition of Default rules, helping you meet compliance obligations in multiple jurisdictions.

Tax/regulatory solutions for global compliance

Part of our Regulatory Compliance product suite, providing complementary tax and compliance solutions to our global client base.