Credit Benchmark and Oliver Wyman Launch IRB Nexus to Help Banks Improve Model Performance and Calibration
Credit Benchmark and Oliver Wyman have launched IRB Nexus, a credit analytics solution designed to help banks improve their internal ratings-based (IRB) models for low- and no-default portfolios. The solution aggregates over 10 million risk estimates annually from more than 40 major banks worldwide, helping financial institutions validate their IRB models and meet regulatory requirements. IRB Nexus addresses the challenge of assessing risk for portfolios lacking historical data, potentially helping banks avoid increased capital reserve requirements that could limit lending capacity.
Credit Benchmark e Oliver Wyman hanno lanciato IRB Nexus, una soluzione di analisi del credito progettata per aiutare le banche a migliorare i loro modelli basati su rating interni (IRB) per portafogli con basso o nessun default. La soluzione aggrega oltre 10 milioni di stime di rischio annuali provenienti da oltre 40 banche di rilevanza mondiale, aiutando le istituzioni finanziarie a convalidare i loro modelli IRB e a soddisfare i requisiti normativi. IRB Nexus affronta la sfida della valutazione del rischio per i portafogli privi di dati storici, aiutando potenzialmente le banche a evitare un aumento dei requisiti di riserva di capitale che potrebbe limitare la capacità di prestito.
Credit Benchmark y Oliver Wyman han lanzado IRB Nexus, una solución de análisis de crédito diseñada para ayudar a los bancos a mejorar sus modelos de calificación internos (IRB) para carteras con bajo o ningún default. La solución agrega más de 10 millones de estimaciones de riesgo anuales de más de 40 grandes bancos en todo el mundo, ayudando a las instituciones financieras a validar sus modelos IRB y cumplir con los requisitos regulatorios. IRB Nexus aborda el desafío de evaluar el riesgo para carteras que carecen de datos históricos, ayudando potencialmente a los bancos a evitar un aumento en los requisitos de reservas de capital que podrían limitar su capacidad de préstamo.
Credit Benchmark와 Oliver Wyman이 IRB Nexus를 출시했습니다. 이 신용 분석 솔루션은 은행들이 낮은 또는 무위험 포트폴리오에 대한 내부 평가 기반(IRB) 모델을 개선하도록 돕기 위해 설계되었습니다. 이 솔루션은 전 세계 40개 이상의 주요 은행으로부터 연간 1천만 건 이상의 위험 추정치를 집계하여 금융 기관이 자신의 IRB 모델을 검증하고 규제 요건을 충족하는 데 도움을 줍니다. IRB Nexus는 역사적 데이터가 부족한 포트폴리오의 위험 평가 문제를 해결하며, 이를 통해 은행들이 대출 능력을 제한할 수 있는 자본 적립 요건 증가를 피하는 데 기여할 수 있습니다.
Credit Benchmark et Oliver Wyman ont lancé IRB Nexus, une solution d'analyse de crédit conçue pour aider les banques à améliorer leurs modèles internes basés sur les notations (IRB) pour les portefeuilles à faible ou sans défaut. La solution agrège plus de 10 millions d'estimations de risque par an provenant de plus de 40 grandes banques à travers le monde, aidant ainsi les institutions financières à valider leurs modèles IRB et à répondre aux exigences réglementaires. IRB Nexus s'attaque au défi d'évaluer le risque pour des portefeuilles manquant de données historiques, aidant potentiellement les banques à éviter une augmentation des exigences en matière de réserves de capital qui pourrait limiter leur capacité de prêt.
Credit Benchmark und Oliver Wyman haben IRB Nexus eingeführt, eine Lösung für Kreditanalysen, die Banken dabei helfen soll, ihre internen Ratingsysteme (IRB) für Portfolios mit wenig oder keinem Default zu verbessern. Die Lösung aggregiert jährlich über 10 Millionen Risikoschätzungen von mehr als 40 großen Banken weltweit und unterstützt Finanzinstitute bei der Validierung ihrer IRB-Modelle und der Einhaltung regulatorischer Anforderungen. IRB Nexus stellt sich der Herausforderung, Risiken für Portfolios ohne historische Daten zu bewerten, und kann Banken helfen, erhöhte Kapitalreserverforderungen zu vermeiden, die die Kreditvergabe beeinträchtigen könnten.
- Solution aggregates data from 40+ major banks worldwide
- Helps banks avoid potential capital reserve increases
- Addresses regulatory compliance challenges
- Provides validation for low-default portfolio risk assessment
- None.
Insights
The launch of IRB Nexus represents a significant advancement in bank risk management capabilities, particularly for challenging low-default portfolios. By aggregating over 10 million risk estimates annually from 40+ major banks, this solution addresses a critical gap in regulatory compliance and capital efficiency.
The platform's impact on capital requirements is particularly noteworthy. Banks can potentially avoid unnecessary capital reserve increases by better validating their IRB models, directly affecting their lending capacity and competitive position. This is especially important for portfolios involving alternative investment funds and non-bank financial institutions that often face heightened regulatory scrutiny.
The collaboration between Credit Benchmark and Oliver Wyman brings together extensive data resources with sophisticated modeling capabilities, potentially reducing regulatory compliance costs while optimizing capital allocation strategies. For financial institutions, this could translate to improved risk assessment accuracy and more efficient use of capital reserves.
As banks adapt their IRB models to meet evolving global regulatory standards, many struggle to assess risk for low-default portfolios that lack extensive historical data. These portfolios, which may include funds, including alternative investment funds, and non-bank financial institutions are frequently monitored by global regulators due to their potential systemic impact. Without sufficient validation for these models, banks risk facing demands to increase capital reserves—a measure that can restrict lending capacity and hinder competitive positioning.
IRB Nexus helps banks to address these challenges by aggregating more than 10 million risk estimates annually from over 40 of the world’s largest banks. Leveraging Credit Benchmark’s extensive dataset, IRB Nexus offers banks comprehensive benchmarking analytics for validating their own IRB models, allowing them to operate with greater confidence.
“IRB Nexus has the potential to be transformative for banks looking to significantly bolster their historical credit analytics data feeding their capital models,” said Cem Dedeaga, Partner at Oliver Wyman. “With Credit Benchmark’s aggregated data, we’re empowering risk officers with the insights needed to meet regulatory expectations while sustaining their lending potential.”
Michael Crumpler, CEO of Credit Benchmark, added, “We’re proud to bring our extensive dataset to IRB Nexus. By equipping financial institutions with critical data on low-default exposures, this collaboration enhances risk modeling for portfolios that traditionally lack sufficient information, fostering transparency and reliability in commercial credit assessments.”
Supported by a structured implementation process customized to each client’s portfolio, IRB Nexus easily integrates with the client’s IRB models.
For more information on IRB Nexus please visit oliverwyman.com or to schedule a consultation, please contact cem.dedeaga@oliverwyman.com. To learn more about Credit Benchmark, please visit creditbenchmark.com or contact joe.proctor@creditbenchmark.com.
About Credit Benchmark
Founded in 2015, Credit Benchmark is a leading provider of credit risk data and analytics. The company aggregates and anonymizes contributed risk data from over 40 global financial institutions, producing unique obligor-level Credit Consensus Ratings and other key credit metrics. Covering more than 110,000 legal entities—
About Oliver Wyman
Oliver Wyman, a business of Marsh McLennan (NYSE: MMC), is a management consulting firm combining deep industry knowledge with specialized expertise to help clients optimize their business, improve operations and accelerate performance. Marsh McLennan is a global leader in risk, strategy and people, advising clients in 130 countries across four businesses: Marsh, Guy Carpenter, Mercer and Oliver Wyman. With annual revenue of
View source version on businesswire.com: https://www.businesswire.com/news/home/20241126314566/en/
Laura Saville, Credit Benchmark Marketing
info@creditbenchmark.com
+44 (0) 20 7099 4322
Patricia Romero, Marsh McLennan
patricia.romero@mmc.com
+44 (0) 7825 193311
Source: Credit Benchmark
FAQ
What is IRB Nexus and what does it do for banks?
How many risk estimates does IRB Nexus analyze annually?
What problem does IRB Nexus solve for financial institutions?
