Banks and consumer credit: Risk Management
The increasing need to automate assessment procedures for the risk associated with extension of credit, in addition to new international national supervisors’ regulations (Basel II), have led the financial sector to develop internal rating processes.
The best approach from an analytical perspective involves the implementation of systems to:
- assess the new client’s credit rating;
- monitor bank credit;
- calculate the total capital charge on the basis of pre-determined standards from the New Assets Requirements Agreement
This is translated into the development of: