The latest CRD IV regulations make small changes to risk-weighted credit exposure for banking institutions, except in the area of derivatives where the exposure can now be significantly higher.
With the regulations effective from January 1st 2014, many UK banks are simply not ready to calculate this risk. The calculation is highly complex and can result in significant additional capital requirements as explained in Article 384 of the CRR, 27/06/13.
For example, a 20 year collateralised interest rate swap with one of the large UK clearing banks could result in a capital requirement over 20 times greater than the current regime.
ALMIS International believe it is the first company to provide its clients with a fully functional CVA risk report. Their client base trust the ALMIS system to anticipate the regulatory landscape and to respond so quickly and effectively to ensure its users understand the implications and are able to easily comply with changes to the CRD IV regulations.
For more information about how the ALMIS software can benefit you, contact Cecilia Mueller, Business Development Executive or call +44 (0)131 452 8898