In the "fully stressed" simulation featured in the IRA Bank Monitor, some of the largest US banks were shown to need Economic Capital ("EC"), a Basel II term meant to describe the amount of capital required to cover the risks taken by a financial institution, well in excess of their current Tier One Risk Based Capital ("RBC").
The IRA Bank Monitor is a unique performance and risk model of all FDIC insured depository institutions, including a variety of financial tests, Basel II credit ratings and risk metrics. IRA is currently the only organization that uses the "as filed" electronic version of the FDICâs Research Information Service to generate performance and risk metrics defined under Basel II. By using the "as filed" version of the FDIC data in our bank analytics tools, we avoid the input errors found in many commercial bank regulatory data products.
IRA is also the only organization publishing apples-to-apples Economic Capital and Risk Adjusted Return On economic Capital (RAROC) risk management benchmarks comparable across all 8,900+ bank units and 900+ bank holding companies registered with the FDIC.