Temenos Regulatory Compliance

New Definition of Default for Credit Risk

Designed to meet the requirements of Risk and Compliance professionals. Temenos Definition of Default for credit risk solution helps financial institutions of all sizes reduce risk and improve profitability whilst safeguarding regulatory compliance.

Why Temenos New Definition of Default for Credit Risk

Temenos New Definition of Default provides a fully integrated modular product solution to help firms address the challenges of complying with prudential rules for calculating capital adequacy within the broader context of credit risk management.

Our comprehensive solution comprises the framework to support the fundamental processes banks need to perform, whilst providing additional factors for assessing the credit risk of their customers.

Fully automated solution for Definition of Default

Solution provides a fully automated workflow-driven process supporting the core infrastructure required 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.

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

Full user flexibility 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, in line with regional regulations such as European Banking Authority (EBA) Guidelines and the Banking Commission of Central Africa (COBAC) credit risk rules.

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.

Replace manual processes and reduce costs of compliance

Remove inefficiencies associated with manual processing therefore helping banks better serve their customers and reduce the headline costs associated with compliance processes.

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Leading-Edge Technology

Built on Temenos Transact, our solution provides scalable, highly performant, best in class capabilities. Including advanced API-first technology which empowers banks to rapidly innovate, connect to ecosystems and enable developers to build their own connectivity or apps.

Product Overview

Temenos Definition of Default for credit risk is a fully automated solution designed to provide Risk, Compliance and Back Office operations teams with an efficient cost-effective process to support our clients’ capital adequacy processes within the broader context of credit risk management.

In particular, our solution comprises a generic framework supporting the fundamental processes banks need to comply with new rules for defining default and assessing contagion between obligors:

  • Module 1 supports the ability to create the required obligor structure (including joint obligors) to monitor the contagion effect of a defaulted party on related obligors
  • Module 2 enhances existing asset classification capability to provide assessment of individual and Joint obligors
  • Module 3 enables the identification of the contagion effect of a defaulted obligor on obligors connected within direct contractual and user-defined relationship groups.

Fully automated solution

Definition of Default significantly reduces operational inefficiencies and costs associated with manual processes

Flexible Component based implementation

Modular design enables ‘progressive renovation’ by providing option to implement in phases as client requires

Comprehensive solution to support fundamental aspects of cross-regional regulations

Provides user configurable rules engine to support regional adaptations of definition of default rules, helping firms address the challenges of meeting their compliance obligations in multiple jurisdictions.

Tax/Regulatory solutions for global compliance

Definition of Default solution is part of the Regulatory Compliance product suite providing complimentary Tax and compliance solutions to support our global client base