Moody’s Analytics, a global provider of financial intelligence, has launched Banking Cloud Credit Risk, a cloud-native regulatory calculation and reporting engine. Available as a software-as-a-service (SaaS) solution, the tool helps banks stay up-to-date with the latest regulatory requirements while removing the need for on-premise software deployment and maintenance.

The solution is configured with pre-defined regulatory rules and reporting templates, providing banks with greater flexibility and faster turnaround times on their credit risk calculations and regulatory reports, including the Basel Committee on Banking Supervision (BCBS) standards, the European Banking Authority (EBA) Capital Directive regulations, and various national discretions used by local regulators. In addition, regulatory updates and software maintenance are managed by Moody’s Analytics, allowing financial institutions to scale the number of reports as required.

Banking Cloud Credit Risk enables financial institutions to easily identify and understand the variance between different reporting periods or regulatory requirements, and evaluate the business impact of future regulations to make better-informed business decisions. The calculation engine also allows users to conduct parallel runs of their risk-weighted asset numbers according to the standardized and internal ratings-based approaches, which will be required in 2022 with the introduction of the revised Basel III credit risk rules.

With intuitive data management capabilities, banks can quickly load, transform, and reconcile their data, benefiting from enhanced data lineage, and a single source of truth for their regulatory requirements.

“As with all of our cloud-native regulatory solutions, we designed Banking Cloud Credit Risk to help financial institutions drive business efficiencies, reduce their IT infrastructure costs, and respond to evolving regulations more quickly,” said Andy Frepp, General Manager at Moody’s Analytics. “Banks need to comply with the new requirements and manage their cost of compliance. Technologies that offer flexibility and scalability are central to achieving these objectives.”

Banking Cloud Credit Risk joins the Moody’s Analytics suite of cloud-native regulatory and accounting solutions, which includes the Transactional Reporting Tool for AnaCredit reports in Europe, and ImpairmentStudio ™ for Current Expected Credit Loss (CECL) calculations and reporting in the US.