RWA optimization to increase capital ratios
When you go from a process measuring the exposure to credit risk according to the standard methodology to a process based on internal ratings, the concept of RWA becomes part of the lending process and the analysis of creditworthiness.
• CLIENT: CREVAL - Credito Valtellinese
• REQUIREMENTS: To initiate an RWA optimization program in order to increase capital ratios.
• SOLUTION: Information, benchmarking tools, CRIF expertise, and consultancy support on credit processes.
• RESULTS: Capital savings over the entire RWA Optimization and Common Equity Tier 1 Ratio project development.
CREVAL, an Italian cooperative banking group, asked for CRIF's support for an RWA optimization project to increase the capital adequacy of the group. The project was complex and involved different areas of the bank
"We decided to ask for CRIF's support because of its expertise in credit process management, considering that RWAs are an integral part of this. What's more, a consultancy company that knows the credit process could act as facilitator between the various functions in the bank”.