Business Challenge: 

The client was one of the largest private sector banks in Kingdom of Bahrain with 5 subsidiaries in Kuwait, Egypt, Qatar, UK and an asset size of more than $22 Billion. The client was adjudged the best bank in Middle East for the year 2007 according to Euro money magazine.

The bank required functional support to implement Banc Ware Capital Manager (BWCM) tool to calculate credit risk pillar I charge under the standardized approach for the bank and all its subsidiaries as per the local regulatory guidelines. BWCM is a tool of Sun Guard for regulatory capital calculation.

Our Approach

The project involved (i) Preparing Business Requirement Specifications for the Bank and all its subsidiaries (ii) Performing data gap, data preparation and data mapping exercise for the bank and all it's subsidiaries (iii) Writing the Extract, Transform and Load (ETL) logic for the bank (iv) Preparing User Acceptance Test (UAT) cases for validation of calculation logics for all the entities and support the bank in reconciliation. Outlined below is the approach followed by Aptivaa broken down on the base of activities.

Business Requirement Specification:  The activity involved understanding the reporting requirements of the regulators with focus on home country and host country issues and the analysis of the requirements for standardized approach for each subsidiary of the bank according to the applicable local regulatory guidelines.

Data Integration: The Data integration process involves conducting a data gap analysis and identifying the appropriate data fields in the Source systems, Data Mapping exercise for all the subsidiaries of the client and performing checks on data for quality and suitability and writing ETL logics for data transformation.

Reports: Standalone reports were generated for the bank and all its subsidiaries as well as consolidated report was generated as per the Central Bank's guidelines.

Validation: Comprehensive test cases for all the entities functioning under different regulatory guidelines were prepared for user assurance testing. Reconciliation of the regulatory reports was done with the bank's MIS systems.

Business Benefits

The Bank was able to calculate, accurately and in compliance with the different regulatory guidelines, the pillar I capital charge for credit risk under the standardized approach. Further, verification of the calculated figures was also done by developing a comprehensive repository of regulator specific UAT cases and through reconciliation with the bank's MIS systems.