IRB-compliant rating platform for CRE finance
German real estate bank (DZ HYP) leverages the Credit Risk Management Platform as a centralized rating system.
ABOUT DZ HYP
DZ HYP is a leading real estate bank, and a major issuer of Pfandbriefe (German covered bonds) in Germany. The bank is an integral part of the German Cooperative Financial Network (DZ Bank Group).
About the project
- Implementation of a centralized and IRBA-compliant rating platform
- Integration of the bank’s internal rating models (PD and LGD) for commercial real estate (CRE) finance, corporations, SME, and retail clients
- Provision of a “Rating-As-a-Service” offering that allows cooperative member banks to create ratings based on the DZ HYP’s rating methodology
- Integration with existing core banking system for upstream data integration (e.g. obligor master data, collateral/ facility data)
Customer Benefits
- Implementation of all of the bank’s rating models (~15 models) on a centralized risk rating platform resulting in considerable cost reductions
- Flexible implementation and maintenance of rating models by the bank’s risk management team using a graphical drag-and-drop rule editor
- Fast execution of complex rating models that are based on cashflow calculations using monte-carlo simulation
- Compliance with all regulatory requirements (e.g. CRR / CRD, BCBS, GDPR)
- Creation of a centralized data storage for risk controlling and performing impact analyses
ACTICO Products in Use
„ACTICO provides the bank with an integrated system for all rating models that comprehensively supports our credit analysts during the rating workflow.”
Dr. Stefan Krohnsnest
Head of Risk Controlling, DZ HYP