Application Supports Proactive Risk Management and Facilitates Compliance with International Financial Reporting Standards (IFRS) 9, Basel III and Dodd-Frank Requirements
Oracle today introduced Oracle Financial Services Loan Loss Forecasting & Provisioning, a new analytical application that helps financial services organizations accurately forecast credit losses and compute loan loss provisions to facilitate compliance with new regulatory requirements.
Oracle Financial Services Loan Loss Forecasting & Provisioning provides pre-configured computation models and stress testing capabilities that enable financial institutions to effectively forecast credit losses under baseline and multiple stress scenarios, and calculate loan loss provisions as required by International Accounting Standards/International Financial Reporting Standards (IAS/IFRS) and Basel III and Dodd-Frank regulations.
Financial institutions can meet IFRS and Basel III requirements for counter-cyclical provisioning methods with the new analytical application, which uses advanced cash flow modeling techniques and pre-configured and/or in-house methods to compute general and specific loan loss provisions.
The application also supports a proactive approach to regulatory compliance and internal risk management strategies. Its built-in cash-flow engine and configured methodologies enable financial services organizations to effectively manage capital plans and make informed strategic decisions about credit losses and provisioning across all product types.
Organizations can analyze provisions and trends through an extensive set of pre-configured dashboards and reports that facilitate drill-down to the most granular level for more proactive and informed decisions, as well as streamlined regulatory reporting.
As part of the Oracle Financial Services Analytical Applications suite, Oracle Financial Services Loan Loss Forecasting & Provisioning supports enterprise-wide visibility into an institution’s credit risk position via a consistent risk management platform.
Oracle Financial Services Loan Loss Forecasting is fully-compliant with the latest Basel III, Dodd-Frank and IAS/IFRS guidelines and supports multi-jurisdictional calculations.
“Banks are seeking a more holistic approach to loan loss management as well as greater agility in responding to other regulatory requirements around loan loss provisions. Oracle Financial Services Loan Loss Forecasting & Provisioning delivers on both of these requirements,” said S. Ramakrishnan, group vice president and general manager, Oracle Financial Services Analytical Applications. “The robust application facilitates compliance and responsiveness through pre-configured computation models and stress testing capabilities. As important, it enables more proactive risk management strategies with a dashboard approach that enables risk professionals and line of business managers, alike, to understand defined baseline and stress scenarios, the calculation process, and, most important, the impact of scenario results.”