Using through-the-cycle data, BBA automates Basel Capital Adequacy Reporting (BCAR), Internal Capital Adequacy Assessment Process (ICAAP) and other regulatory filings.
ECAP Leader, BBA’s proprietary application, automates ICAAP reporting, covering Pillar 1 (Credit, Operational and Market) risks and Pillar II (Business, Interest rate and Concentration) risks, associated processes and reporting.BBA's ECAP Leader is engineered to provide an integrated view of required capital for material risks based on discrete analysis of each transaction at granular level. The primary purpose of ECAP Leader is to determine risk-adjusted capital attuned to an organization’s risk tolerance level.
Instead of relying on error-prone spreadsheets and exposing the organization to costly risks, BBA recommends using ECAP Leader as a cost-effective and reliable alternative for ICAAP and BCAR automation.
BBA’s ECAP Leader clients receive complimentary training, methodology document, user-manual, quarterly reporting templates, facilitated regulatory accreditation, board and management approvals and 24x7 support.
ECAP Leader can be configured to meet loan book’s disparate segments.
ECAP Leader helps regulators, management and boards determine baseline capital requirements,
set risk appetite limits, make better-informed decisions based on the organization’s
risk capacity and develop an Economic Capital-based yardstick to evaluate solvency.
Credit risk capitalization using Basel II IRB formulae
Operational risk capitalization based on Basel II Standardized Approach
Value-at-risk based market risk capitalization
Risks impacting earnings volatility which may result from strategic board and management decisions
Interest rate risk
The interest rate risk capitalization using Economic Value of Equity approach
Concentration risk capitalization based on Basel II ‘mark-to-market’ approach
Risk Adjusted Return on Capital
Parametric calculation of loan book’s risk-adjusted return on capital