Moody's logo
Americas: +1-212-553-1653 Japan: +81-3-5408-4100 Asia Pacific: +852-3551-3077 EMEA: +44-20-7772-5454
Contact

Final Basel: Measure, Manage, Report

The latest Basel framework introduces stricter capital and liquidity requirements, fundamentally changing banking operations and their capacity to manage return on equity and investments.

With the first compliance deadline approaching and even more on the horizon, banks are pressed to refine their strategies not only to meet regulatory obligations but also to achieve their strategic financial objectives.​

Contact us today to see how Moody’s can help you navigate Basel compliance and turn regulatory hurdles into advantages. 

Get in touch

How can we help?

For over two decades, we've been ​helping banks with Basel compliance, earning trust of clients and regulators worldwide.

We bring together regulatory expertise, vast data sources, advanced risk analytics and cloud-native software to allow you to accurately measure, effectively manage and timely report the impact of Basel.

Our approach ensures that you are well-positioned to achieve your strategic financial goals and address compliance with one strategic solution for all upcoming deadlines.

01
Accurately measure

Evaluate the overall impact of Basel on your regulatory capital.

Use our expertise, data, analytics and software to measure and report regulatory capital and liquidity metrics, including Risk Weighted Assets (RWAs), Liquidity Ratios (LCR, NSFR), Leverage Ratios, capital buffers (under the output floor constraints) and more, with precision, transparency and speed. 

02
Effectively manage

Use your regulatory metrics as a key driver of profitability and growth.

Leverage our credit portfolio management framework to turn RWA calculation results into portfolio risk/reward optimization strategy that aligns with your business goals.

Use active strategies to optimize your path to profitability under capital constraints.

03
Timely report

Set up timely and accurate reporting across multiple jurisdictions with our streamlined and automated process.

Stay ahead of regulatory changes with our global regulatory updates monitoring service, offering you coverage of over 50 global regulators. 

04
Streamline operations

Use the eco-system of our solutions to address operational challenges of compliance such as granular data processing, complex calculations and multiple implementations.

Our approach brings scalability, resilience, and automation through an efficient, and cost-effective single implementation for all upcoming Basel related deadlines.

Get in touch

Speak to our team today

Get In touch

Basel impact on banking workflows

The revisions impact various workflows within the bank, facilitating a convergence between risk and finance functions to navigate the challenges of operating under capital contains effectively.

basel infographics

Final Basel: Measure, Manage, Report

Moody’s brings together the best of data, risk analytics, regulatory expertise and tech innovation to help you achieve your strategic financial goals while navigating Basel compliance with confidence.

Download the Basel compliance brochure
basel infographics

Holistic Basel framework

01 Data

Data

Enhance your compliance strategy with our data solutions, designed to fill the data gaps and to establish full, accurate, and transparent calculations in accordance with BCBS 239 and other data governance regulations.

We support banks beyond credit ratings for Basel requirements, offering data solutions to improve regulatory frameworks.​
 

Moody’s Ratings data:​

  • Functions as a trusted External Credit Assessment Institution (ECAI).​
     

  • Supports risk management of credit risk for Basel compliance.​

     

SCRA (Standardized Credit Risk Assessment) data solution:​

  • Integrated with credit risk RWA calculation module 
     

  • Provides financial and supervisory data from over 10,000 entities and 100+ national regulators
     

  • Derives SCRA grades for accurate risk-weight calculation under standardized approach​

     

Securitization data:​

  • Integrated with Moody’s Structure Finance solution​
     

  • Enables straight-through securitization RWA calculations from SF Portal

Find out more about measuring and reporting the impacts of Final Basel:

02 Measure

Measure

Rely on our regulatory expertise and experience to achieve precision, transparency, and speed in the measurement and reporting of regulatory Pillar 1 and Pillar 2 risks - all with minimum disruption and within budget.

We offer data, scenarios and regulatory software to help you navigate the complexities of regulatory compliance, while also using the achieved insights for strategic business decision-making.
​

Calculate the following risks to fully understand and evaluate the overall impact of Final Basel on your business: ​

  • Risk Weighted Assets (RWAs) for credit risk (NCCR, CCR), market risk (FRTB) & operational risk​
     

  • Capital & leverage ratios
     

  • Large exposures and concentration risk
     

  • Liquidity Coverage Ratios (LCR)​
     

  • Net Stable Funding Ratios (NSFR)​

  • Additional Liquidity Monitoring Metrics (ALMM)

  • Interest Rate Risk Banking Book (IRRBB)​
     

  • Stress testing and scenario analysis​
     


Our solutions also provide credit risk assessment such as probability of default score, implied ratings, early warning signals, scenario analysis and risk drivers for 500+ million entities.
 

Leverage the interconnectedness of our solutions to:

  • Seamlessly feed RWA calculations to the reporting teams for accurate and timely regulatory reporting; 
     

  • Instantly relay key insights from the calculation process to credit teams, enabling proactive management and optimization of portfolios within capital constraints.

     

Beyond these analytics, our comprehensive solution brings you data integrity, speed, precision, transparency, and governance across the entire calculation and reporting workflow, setting a new standard for excellence.​

Find out more about measuring and reporting the impacts of Final Basel:

03 Manage

Manage

Use our solution to seamlessly turn your Risk-Weighted Assets (RWAs) calculation results into portfolio risk/reward optimization strategy.

We help banks to optimize their capital consumption by integrating RWAs with the credit portfolio management and securitization workflows. This enables banks to:

  • Gain a comprehensive view of their capital requirements and adjust their capital allocation across both Pillar 1 and Pillar 2

  • Optimize their path to profitability under capital constraints – manage the capital efficiently and effectively, reducing the impact of the output floor

     

Our integrated approach to active portfolio management will allow you to: 

  • Define target portfolio in terms of product, customer and segment mix

  • Review your risk appetite and set limits accordingly
     

  • Analyze the risk/return balance

  • Deploy risk transfer, set syndication and securitization targets and reduce concentration risk to optimize your balance sheet

  • Test portfolio performance under various stress scenarios

  • Optimize capital allocation across both credit and market risk​
     

  • Improve the accuracy of Economic Capital simulations​

  • Enhance the transparency and consistency of capital requirements​

  • And ultimately, make informed decisions about capital allocation and risk management


By leveraging our integrated solutions and expertise, banks can identify areas of inefficiency and redirect capital to high-return initiatives, driving profitability and growth.

Find out more about Final Basel capital optimization strategies and solutions:

04 Report

Report

Use our solution to seamlessly integrate regulatory reporting and risk calculation into one streamlined and automated process. 

  • Report your risk calculation results accurately and timely, across multiple jurisdictions. 
     

  • Stay ahead of regulatory changes by using Moody's global regulatory monitoring service. We continually update our solutions to reflect the latest regulations, including taxonomies and reporting standards from over 50 regulatory bodies.
     

  • Ensure data integrity and traceability. Our solution features automated drill-up/down and comprehensive data lineage, both forward and backward looking. This transparency enables easy tracing of the data journey from origin to final report generation and back, greatly simplifying the process of investigating data discrepancies or variances.​
     

  • Go beyond regulatory and leverage the insights receiving during the reporting process to better inform your business decisions. 
     

  • Communicate insights in real time to key decision makers within the business to complete the holistic response to the regulation and steer to profitability.

     

Overall, our solution assures data integrity, optimizes processes, and enables real-time reporting, all while minimizing the operational production time. By streamlining your reporting process, we empower you to focus on what matters most – driving business growth and success.

To find out more about our regulatory reporting for Basel and beyond:

05 Technology

Technology

Multiple implementation deadlines, granular data needs, and complex calculation requirements will require significant and simultaneous changes in your operational, risk management, and reporting systems.

Our Final Basel solutions are delivered via SaaS, so any potential technology disruption can be turned into operational excellence, creating a robust, non-siloed system with one easy and cost effective  implementation for all upcoming deadlines.

SaaS also means that we can move beyond just compliance with the help of innovation. From AI enabled assistants, helping you to understand, interpret and implement regulatory changes with a click of a button; to machine learning capabilities — the use of emerging tech in our solutions works to minimize disruption and increase efficiencies throughout, bringing resilience and competitive advantage.

Our offering also brings you:

  • Advanced data governance and risk analytics​ 

  • Scalable and automated workflows​

  • Interoperability
     

  • APIs that enable smooth integration into your existing architecture
     

  • Real-time reporting and analytics​

     

By leveraging our expertise and next generation technology, you'll transform an operational burden into an opportunity for operational excellence. 

Find out more about measuring and reporting the impacts of Final Basel:

Data

Enhance your compliance strategy with our data solutions, designed to fill the data gaps and to establish full, accurate, and transparent calculations in accordance with BCBS 239 and other data governance regulations.

We support banks beyond credit ratings for Basel requirements, offering data solutions to improve regulatory frameworks.​
 

Moody’s Ratings data:​

  • Functions as a trusted External Credit Assessment Institution (ECAI).​
     

  • Supports risk management of credit risk for Basel compliance.​

     

SCRA (Standardized Credit Risk Assessment) data solution:​

  • Integrated with credit risk RWA calculation module 
     

  • Provides financial and supervisory data from over 10,000 entities and 100+ national regulators
     

  • Derives SCRA grades for accurate risk-weight calculation under standardized approach​

     

Securitization data:​

  • Integrated with Moody’s Structure Finance solution​
     

  • Enables straight-through securitization RWA calculations from SF Portal

Find out more about measuring and reporting the impacts of Final Basel:

Measure

Rely on our regulatory expertise and experience to achieve precision, transparency, and speed in the measurement and reporting of regulatory Pillar 1 and Pillar 2 risks - all with minimum disruption and within budget.

We offer data, scenarios and regulatory software to help you navigate the complexities of regulatory compliance, while also using the achieved insights for strategic business decision-making.
​

Calculate the following risks to fully understand and evaluate the overall impact of Final Basel on your business: ​

  • Risk Weighted Assets (RWAs) for credit risk (NCCR, CCR), market risk (FRTB) & operational risk​
     

  • Capital & leverage ratios
     

  • Large exposures and concentration risk
     

  • Liquidity Coverage Ratios (LCR)​
     

  • Net Stable Funding Ratios (NSFR)​

  • Additional Liquidity Monitoring Metrics (ALMM)

  • Interest Rate Risk Banking Book (IRRBB)​
     

  • Stress testing and scenario analysis​
     


Our solutions also provide credit risk assessment such as probability of default score, implied ratings, early warning signals, scenario analysis and risk drivers for 500+ million entities.
 

Leverage the interconnectedness of our solutions to:

  • Seamlessly feed RWA calculations to the reporting teams for accurate and timely regulatory reporting; 
     

  • Instantly relay key insights from the calculation process to credit teams, enabling proactive management and optimization of portfolios within capital constraints.

     

Beyond these analytics, our comprehensive solution brings you data integrity, speed, precision, transparency, and governance across the entire calculation and reporting workflow, setting a new standard for excellence.​

Find out more about measuring and reporting the impacts of Final Basel:

Manage

Use our solution to seamlessly turn your Risk-Weighted Assets (RWAs) calculation results into portfolio risk/reward optimization strategy.

We help banks to optimize their capital consumption by integrating RWAs with the credit portfolio management and securitization workflows. This enables banks to:

  • Gain a comprehensive view of their capital requirements and adjust their capital allocation across both Pillar 1 and Pillar 2

  • Optimize their path to profitability under capital constraints – manage the capital efficiently and effectively, reducing the impact of the output floor

     

Our integrated approach to active portfolio management will allow you to: 

  • Define target portfolio in terms of product, customer and segment mix

  • Review your risk appetite and set limits accordingly
     

  • Analyze the risk/return balance

  • Deploy risk transfer, set syndication and securitization targets and reduce concentration risk to optimize your balance sheet

  • Test portfolio performance under various stress scenarios

  • Optimize capital allocation across both credit and market risk​
     

  • Improve the accuracy of Economic Capital simulations​

  • Enhance the transparency and consistency of capital requirements​

  • And ultimately, make informed decisions about capital allocation and risk management


By leveraging our integrated solutions and expertise, banks can identify areas of inefficiency and redirect capital to high-return initiatives, driving profitability and growth.

Find out more about Final Basel capital optimization strategies and solutions:

Report

Use our solution to seamlessly integrate regulatory reporting and risk calculation into one streamlined and automated process. 

  • Report your risk calculation results accurately and timely, across multiple jurisdictions. 
     

  • Stay ahead of regulatory changes by using Moody's global regulatory monitoring service. We continually update our solutions to reflect the latest regulations, including taxonomies and reporting standards from over 50 regulatory bodies.
     

  • Ensure data integrity and traceability. Our solution features automated drill-up/down and comprehensive data lineage, both forward and backward looking. This transparency enables easy tracing of the data journey from origin to final report generation and back, greatly simplifying the process of investigating data discrepancies or variances.​
     

  • Go beyond regulatory and leverage the insights receiving during the reporting process to better inform your business decisions. 
     

  • Communicate insights in real time to key decision makers within the business to complete the holistic response to the regulation and steer to profitability.

     

Overall, our solution assures data integrity, optimizes processes, and enables real-time reporting, all while minimizing the operational production time. By streamlining your reporting process, we empower you to focus on what matters most – driving business growth and success.

To find out more about our regulatory reporting for Basel and beyond:

Technology

Multiple implementation deadlines, granular data needs, and complex calculation requirements will require significant and simultaneous changes in your operational, risk management, and reporting systems.

Our Final Basel solutions are delivered via SaaS, so any potential technology disruption can be turned into operational excellence, creating a robust, non-siloed system with one easy and cost effective  implementation for all upcoming deadlines.

SaaS also means that we can move beyond just compliance with the help of innovation. From AI enabled assistants, helping you to understand, interpret and implement regulatory changes with a click of a button; to machine learning capabilities — the use of emerging tech in our solutions works to minimize disruption and increase efficiencies throughout, bringing resilience and competitive advantage.

Our offering also brings you:

  • Advanced data governance and risk analytics​ 

  • Scalable and automated workflows​

  • Interoperability
     

  • APIs that enable smooth integration into your existing architecture
     

  • Real-time reporting and analytics​

     

By leveraging our expertise and next generation technology, you'll transform an operational burden into an opportunity for operational excellence. 

Find out more about measuring and reporting the impacts of Final Basel:

Bringing technology closer to you

In an ever-changing world of exponential risk and regulatory pressure, banks must anticipate and react to change faster than ever. Resilience is critical to success, requiring you to evolve technologically to remain competitive.

#BankingOnTech

Through a continuous cycle of research, development, and expert partnerships, Moody’s is committed to delivering the latest innovative technology within our solutions to our customers reliably and securely.

We leverage the power of technology such as AI, SaaS, cloud computing, machine learning, and APIs to deliver business efficiencies through interoperability, scalability, and automation.

Technology also enhances your decision-making by bringing Moody’s tools, data, and analytics together and closer to you so you can use our advanced expertise in an intuitive, seamless way. At Moody’s, we’re unlocking the next generation of technology and putting it to work for you.
 

banking

News and views

whitepaper
Basel IV and the butterfly effect: a lesson in unintended consequences

In this whitepaper, we interpret Basel IV through its historical context, suggest best practices and analyse consequences on stability of the financial system.

Learn more
whitepaper
The changing face of credit portfolio management at banks

Explore the evolving role of Credit Portfolio Management (CPM) amidst regulatory shifts and economic uncertainties. In this whitepaper, we explore how CPM is becoming a strategic cornerstone for banks facing the new Basel III capital requirements.

Learn more
article
Biting the bullet on Basel

As banks gear up for the final Basel III implementation, the opportunity to redefine their approach to compliance as a catalyst for business excellence is evident. Discover expert-recommended strategies on how banks can transform Basel III compliance challenges into strategic business opportunities.

Learn more

GET IN TOUCH

Speak to our team

Interested in learning more about our offerings? Our solutions specialists are ready to help.