Management of equity capital is increasingly important. Not lastly due to the financial crisis, there is a higher need for information, and control is increasingly exercised according to regulatory capital. Profit Centres are controlled according to equity capital consumption and are therefore already interested in product-specific regulatory capital requirement calculations before closing transactions.
BearingPoint developed the CAPITAL-Analyzer to solve this problem. The CAPITAL-Analyzer can be used to make a pre-calculation for a business event (e.g. a credit, a credit approval and a possible collateral) even before closing the transaction with regard to regulatory values in order to know the effects on charges against equity. An even greater benefit is offered by the option of portfolio calculation which makes it possible to analyse the effects of a new transaction in its interplay with all relevant and already existing transactions of the customer.
The CAPITAL-Analyzer is currently available as a Regulatory Capital-Analyzer (RCA). The RCA is an equity capital calculator which can perform the pre-calculation of individual business events (scenarios) on the basis of the equity capital requirements of the solvency regulations. The calculation is possible for all approaches (SA , FIRB and AIRB).
The CAPITAL-Analyzer provides banks with a series of advantages:
The CAPITAL-Analyzer is a web-based solution. It can therefore be provided as a centralized service to several users who work in different locations. The very user-friendly interface, which can be individually designed for each bank, allows online calculations; the calculation results are quickly shown in a clear overview -also online.
Like ABACUS/DaVinci, the CAPITAL-Analyzer is also based on a relational data model. This means that you must only enter collaterals once, and can then assign them to specific risk positions as you choose.
Like ABACUS/DaVinci, the CAPITAL-Analyzer is a web-based client/server application. The following components are required on the server: