Profile Software, an international software development company, is introducing the new upgraded version of RiskAvert, with the addition of new features for NPE Backstopping and Banking Portfolio Risk (IRR).
RiskAvert, the comprehensive capital adequacy risk management platform, has been upgraded to incorporate the NPE Prudential Backstop module that allows financial institutions to meet regulatory requirements for calculating and reporting minimum NPE losses.
The new version fully covers the calculation of the minimum amount of loss coverage for Non-performing Exposures (NPEs), in accordance with the provisions of Regulation (EU) 2019/630. It also covers all relevant supervisory reporting requirements of the European Banking Authority (EBA).
The “Prudential Backstop” supervisory rules set a binding level of minimum loss coverage, which banks must allocate as regulatory capital for new loans that become non-performing after the application of this regulation (April 2019).
In addition, the new version of RiskAvert meets the regulatory requirements for Interest Rate on the Banking Portfolio (IRRBB). The new version of the IRRBB incorporates the most recent changes that are being finalized (April 2022) and will be implemented next year. The forthcoming changes introduce methodologies for calculating NII (Net Interest Income) which differ from those of EVE (Economic Equity Value), as well as the simplified standardized approach.
With the new functionalities, financial institutions in the Eurozone will be able to meet the requirements of the CRR / CRD regulatory framework even more effectively by strengthening their business activities. RiskAvert has been developed to help banking organizations achieve these goals through an automated and flexible platform.
Source: Capital
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