COMMERCIAL BANK. Moody s Analytics Solutions for the Commercial Bank

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1 COMMERCIAL BANK Moody s Analytics Solutions for the Commercial Bank

2 Moody s Analytics Solutions for the Commercial Bank CATERING TO ALL DIVISIONS OF YOUR ORGANIZATION The Moody s name is synonymous with leadership in analyzing and monitoring credit risk worldwide, but our expertise extends beyond credit risk. Catering to the evolving needs of commercial banks, we have augmented our capabilities to address your broader enterprise risk management requirements. CORPORATE & BUSINESS BANKING Make better credit decisions using customized scorecards validated by the world s most comprehensive credit default database. Facilitate financial spreading, credit analysis, data storage, and limits management on our enterprise platform with automated workflows. Analyze and report on your corporate loan portfolio and understand the impact of new deals on risk and performance. Ensure your staff has the skills and knowledge to make good corporate lending decisions. RETAIL BANKING Quantify the impact economic conditions can have on retail credit performance in the context of your own lending standards and business practices. Effectively capture changes in performance by analyzing the underlying quality at origination, seasoning of the accounts and changes in the economic and credit cycles. Our solution encompasses all consumer loan types, allowing you to understand the drivers of retail credit performance and confidently take action to limit downside risk, maximize upside opportunities and meet regulatory requirements. We Assist with All Aspects of Your Credit Process POLICY & STRATEGY SETTING INFORMATION COLLECTION SCORING & RATING PORTFOLIO MANAGEMENT REPORTING» Credit administration» Credit committee» Reserving strategy» Risk transference strategy» Master rating scales» Collateral tracking» Statement spreading» Data aggregation (internal and third party)» Research» PD, LGD, EAD and EL determination» Application scoring» Initial rating» Surveillance» Loss reserving (ALLL)» Economic capital» Hedging / ALM» Early warning» Stress testing» Compliance and disclosure (internal and external)» Regulatory and audit interfaces

3 ENABLING DIVISIONS TO EASILY SHARE RELEVANT INFORMATION Moody s Analytics enterprise risk management approach goes beyond standard credit, market and operational risk and delivers a solution for the entire risk life cycle. We allow you to tie all credit exposures to an obligor, as well as to the entire portfolio, providing a consistent view of risk from origination to regulatory calculation to reporting to portfolio analysis. TREASURY We can help you determine when to put your cash into action. Evaluate the past and future performance of companies and compare credits to their peers by utilizing financial data that has been adjusted by Moody s analysts for comparability across regions and industries. Assess investments and anticipate rating actions using Moody s expert research. Gain insight into the creditworthiness of specific names or deals, the outlook of particular industries, and the potential indicators of change. Leverage our award-winning portfolio management software and correlation analytics to identify dependencies between asset classes. Our solutions cater to the entire investment workflow from generating ideas and evaluating investments to monitoring portfolios and managing risk/ return profiles. RISK MANAGEMENT & COMPLIANCE FINANCE Moody s Analytics can help you with performance management Credit Risk Control» Receive real-time alerts» Analyze excesses» Perform reporting» Define limit structures» Consolidate rules» Define workflows Risk Data Warehouse Analyze your exposure to interest rate, liquidity, foreign exchange and inflation risk by leveraging indicators such as gap analysis and net economic value sensitivity. Test the impact of stressors on your liquidity position. Calculate economic capital to determine the efficient allocation of capital and resources. Leverage our robust data to benchmark your collections activities and workout management, which includes 13 million financial statements on 2.5 million firms and 200,000 private company defaults. Our enterprise risk management systems allow you to gain insight into organizational activities, improving the effectiveness of your loss reserving and general provisioning processes Meet and exceed Basel Committee requirements with our integrated regulatory and capital management systems and supporting services already in use by more than 40 banking supervisory bodies.»» Our solutions address credit, market, and operational risk, generate all required regulatory reports out-of-the-box, and allow you to quickly and accurately benchmark portfolio-level risk and return. External Applications» Send/Receive messages in real-time» Requests» Alerts» Margin call» Updated data» Workflow Data» Counterparty» Exposure» Collateral» Referential Business Users» Real-time pre-deal checking» Workflow steps» Reporting and trend analysis» Dashboard browsing

4 GIVING YOU A COMPETITIVE ADVANTAGE Moody s Analytics gives you the tools, insight and solutions that allow you to assess and manage enterprise risk, make informed decisions and adapt your strategies dynamically as circumstances evolve and opportunities arise. A COMPLETE ENTERPRISE RISK MANAGEMENT SOLUTION We combine best-in-class quantitative credit and portfolio analysis with regulatory and balance sheet management software. We address client needs across credit assessment and origination, portfolio management, regulatory and compliance, balance sheet management, and management reporting and stress testing. No other company has a software suite that offers this type of comprehensive, end-to-end solution. ROBUST, MODULAR TECHNOLOGY Our products have been designed from scratch by financial engineers and software developers who have extensive academic knowledge and professional experience in finance, mathematics and information technology. Our modular, building-block architecture includes a unified data warehouse, enabling you to adopt the solution through a proven step-by-step deployment approach. A flexible architecture allows you to integrate our software with your other internal systems or view and modify assumptions. MARKET STANDARD IN CREDIT The recent credit crisis has demonstrated the importance of careful credit analysis. Since John Moody published his first manual on industrial securities in 1900, Moody s has been the leading voice in analyzing and monitoring relative investment quality. Our expert judgment is a reference used throughout credit sensitive markets. We remain pioneers in the quantitative credit space, leveraging the world s most robust default database on private and public companies. By combining expert judgment with quantitative approaches that create early warning systems, economic stress tests that help you understand tail risk, and market indicators that suggest the actions of other market participants, we minimize model risk and enable you to be confident in your analyses. Moody s Analytics voted #1 in Basel II Compliance, Regulatory Risk Capital Calculation and Regulatory Reporting.

5 ESTABLISHED SUCCESS Moody s Analytics has a long history serving commercial banks. Since we first developed the KMV EDF (Expected Default Frequency) credit measure in the 1980s, we have remained a pioneer in the sophisticated application of modern financial theory and statistical analysis. Today, our award-winning products are used by most of the 100 largest financial institutions around the world because no other firm can offer integrated, best-in-class, customizable solutions to address the end-to-end risk management challenges faced by commercial banks. OUR EXPERTISE: ENTERPRISE RISK MANAGEMENT Recognize and manage your enterprise risk to strike the optimal dynamic balance between minimizing exposures and maximizing opportunities. Our solutions combine best-in-class quantitative credit and portfolio analysis with regulatory and balance sheet management software to maximize your effectiveness and impact. ECONOMIC & CONSUMER CREDIT ANALYTICS Make more informed investment decisions by incorporating macro, regional and industry-specific economic data into your models or workflow. Track and monitor key indicators in real estate, labor markets and consumer balance sheets with a variety of historic databases, forecasts with alternative scenarios, and specialized datasets on home prices and foreclosures. CREDIT RESEARCH & RISK MEASUREMENT Tap directly into Moody s Investors Service ratings and delve into the detailed analyses behind them to improve the efficiency of your team and make better credit investment decisions. We put the best practices of the entire world of credit, economics and financial risk management at your fingertips, helping you compete in an evolving marketplace. STRUCTURED ANALYTICS & VALUATION Analyze, monitor and value your structured finance holdings by combining accurate waterfalls and loan-level data with integrated economic and credit risk models, award-winning analytics and superior product support. Moody s Analytics: Essential Insight Serving Global Financial Markets.

6 About Moody s Analytics Moody s Analytics helps capital markets and credit risk management professionals worldwide respond to an evolving marketplace with confidence. The company offers unique tools and best practices for measuring and managing risk through expertise and experience in credit analysis, economic research and financial risk management. By providing leading-edge software, advisory services, and research, including the proprietary analysis of Moody s Investors Service, Moody s Analytics integrates and customizes its offerings to address specific business challenges. CONTACT US Visit us at moodysanalytics.com or contact us at a location below: AMERICAS clientservices@moodys.com EMEA clientservices.emea@moodys.com ASIA (EXCLUDING JAPAN) clientservices.asia@moodys.com JAPAN clientservices.japan@moodys.com Copyright 2010, Moody s Analytics, Inc. All Rights Reserved. SP12752/101215/CROSS/TRI-FOLD_001