February 23, 2006
Institutional Risk Analytics has released a new version of the IRA Bank Monitor, the first commercially available Basel II benchmarking system for US banks that employs "as filed," structured data and calculations from the Research Information Service ("RIS") of the Federal Deposit Insurance Corporation. The new version of the IRA Bank Monitor includes:
Bank Holding Company Profiles: Profiles for all US bank and thrift holding companies are synthesized using data from FDIC Call Reports and represent a "bank only" rollup view of the subject institution. Metrics displayed include performance measures such as Return on Assets, Return on Equity (nominal and tangible), and Risk Adjusted Return on Capital ("RAROC") and Basel II risk metrics such as Loss Given Default ("LGD"), Weighted Average Maturity and Exposure at Default ("EAD").
Economic Capital Calculations: In another IRA exclusive, measures for Economic Capital ("EC") are provided for each BHC as well as subsidiary units, using hard numbers from "as-filed" CALL/TFR reports to develop risk spread factors using IRA's proprietary statistical formulae. IRA benchmarks estimate EC for credit, trading and securities using consistent groundrules to maximize comparability.
Enhanced Display & Delivery: All of the new metrics in the IRA Bank Monitor are now available for inspection and analysis either via a Web display or an Excel download using Microsoft's SpreadsheetML standard.
"These latest additions to the IRA Bank Monitor represent our continuing contribution to enable bank credit officers, executives and directors and regulators better define some of the most important measures of bank health and risk," comments IRA CEO Dennis Santiago." The US continues to be the most advanced banking system on earth despite the inability of risk professionals and regulators to communicate clearly and in a consistent fashion. Part of the reason that important initiatives such as Basel II remain moribund in the US is a lack of focus on defining universal, public data benchmarking measures that can be examined by policymakers and members of the financial community. These enhancements to the IRA Bank Monitor represent our latest contribution to this ongoing effort."
Subscriptions to the IRA Bank Monitor are available either via a Web interface or an on-site implementation. Separate license are available for FDIC CALL/TFR Bank Unit and FRB Y-9C Data, processed and converted to SQL, as well as the metrics and rules engine that powers the IRA Bank Monitor. IRA is available on a consulting basis to provide project management, implementation and operational maintenance tasks related to such implementations.