The implementation of Basel III capital and leverage regulations have driven financial services firms to optimise their use of capital
Driving capital optimisation
The drive to optimise the use of scarce capital resources have driven financial services firms to expand their use of data analytics approaches. Improved management and use of data can have a significant impact on the efficiency of capital usage.
RWA optimisation using data analytics
RWA optimisation is a key lever in driving capital efficiency. Poor data quality and transformation processes often result in derivatives positions being excluded from Expected Positive Exposure (“EPE”) simulations and defaulting to current exposure method (“CEM”) treatment.
The CEM capital treatment reduces the efficiency of derivatives portfolios. Our regulatory capital expertise, combined with the usage of advanced data analytics technologies, has allowed us to deliver significant capital efficiency gains to our clients. Executing real world solutions to deliver quantifiable capital benefits to our clients.