The SmartLender Collateral Management imbued with Basel II, Basel III and Basel IV requirements and practices, is a workflow-driven, web-based and tightly integrated post-approval system, allowing banks to streamline and holistically improve their overall collateral management process. It provides a platform that minimizes manual processing, provides robust collateral maintenance capabilities, which pro-actively manages concentration and sectorial risks.
Legal, Operational, Liquidity and Market Risk of Collaterals
- Robust and efficient policies and procedures to control Residual risks like Legal, Operational, Market and Liquidity Risks.
- Ability to provide strategies for Collateral valuation.
- Management of Concentration Risk which may arise from Bank’s Risk mitigation techniques.
Market Risk and Collateral Coverage
- Periodic assessment of the haircuts can be done to perform a valuation of the collaterals.
- Collateral Value calculated using parameterized haircuts associated with every collateral type.
- Controls can be set in place to set the frequency of collateral valuation, based on Bank’s internal policy on Basel norms or Regulatory requirements.
Robust Documentation Control
- Various document tracking features including Constitutional & Contractual documentation, Facility documentation and Collateral documentation status tracking and their associated checklists.
- Ability to continually ensure that the Collateral and Guarantee transaction documents are adhering to the Bank’s and relevant jurisdiction’s legal enforcement.
- A complete state-based documentation workflow engine, with maker-checker functionality, to ensure that all documentation is properly examined, and processed.
Business Benefits
