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Schedule 1 banks meet capital reserve regulatory compliance deadline; now other financial institutions challenged to follow suit | November 27, 2007
"Basel II" offers significant competitive advantage and business benefits to those who implement effectively
Versabanq's Basel II-compliant asset management software set to help all financial institutions reap the business benefits of Basel II
TORONTO, Nov. 27 /CNW/ - All major Canadian "Schedule 1" (or "chartered") banks passed a significant milestone on Thursday, November 1 by becoming "Basel II" compliant.
Basel II is an accord that aims to create an international standard for national banking regulators to use when setting regulations about how much capital banks need in reserve to guard against financial and operational risks from their lending and investment practices.
The "Big Five" Schedule 1 chartered banks accomplished compliance following a major, multi-year, implementation process alone equal to the $750 million "Y2K" effort of Canada's chartered banks.(*) Now it is the turn of other Canadian financial institutions to meet the Basel II challenge. Basel II compliance can deliver significant business benefits and competitive advantage if implemented effectively. Canadian financial institutions such as the 1,595 credit unions and caisse populaires that serve over 10 million Canadians, trust companies, even some insurance companies and brokerage firms, now have the opportunity to "opt in" to reap the benefits of lower capital requirements and the business benefits of reallocating that capital that Basel II compliance enables.
"In theory financial institutions will benefit from adaptation of Basel II because compliance involves implementing analysis techniques that will increase an organization's understanding of its business, which leads to better risk measurement, risk management and more effective decisions," said Warren Shiau, Lead Analyst IT Research, The Strategic Counsel. "In practice, the system investment required for Basel II and its complex risk analysis methods can be a barrier to effective adoption at the credit union or caisse populaire level."
Featuring enhanced corporate risk measurement and risk management techniques to assess and track credit and operational risk, Basel II's adoption encourages use of more sophisticated capital-allocation and risk management calculations, which allow even smaller financial institutions to leverage their Basel II technology investment beyond mere compliance, and more efficiently allocate capital to benefit the bottom line.
London, Ontario-based financial software provider Versabanq Innovations Inc., in response to this opportunity, offers Basel II-compliant asset management software, Versabanq AMS (Asset Management System), a stand-alone software product. AMS is the result of five years of continuous development and "real-time" use by Pacific Western Bank of Canada and is well-suited to help small and medium-sized financial institutions, such as credit unions and others, better risk manage their complete lending portfolio, including term loans, leases, mortgages, and other assets.
"AMS, Versabanq's state of the art loan origination system,not only offers financial institutions a way to readily achieve Basel II compliance and reap the associated efficiencies, but also represents a versatile and powerful operational upgrade to their lending software," said Neil Beaton, President, Versabanq Innovations Inc. "Additionally, there is a significant cost savings as Basel II compliance is achieved by virtue of this Windows-based implementation, thereby avoiding significant additional investments and time spent on this endeavour."
Improved risk management of the credit decision-making process can enable financial institutions to better evaluate new business opportunities, and manage credit portfolios in an increased efficient and rational manner. As a result financial institutions can, with much greater ease, identify the target credit exposures that provide the best return relative to risk. Senior management is also empowered to proactively pursue business strategies that increase deal volume and maximize profitability within the boundaries of the institution's risk appetite.
(*) Canadian Bankers Association, Maclean's Magazine
About Versabanq's AMS (Asset Management System) product:
AMS was originally custom-built to manage a wide variety of large commercial loans and leases, but is extremely versatile and can handle virtually any kind of lending product. As a Windows-based loan origination system, it is very intuitive and easy to use. It is built around a clear workflow incorporating flexible role-based securities and features extensive reporting functionality. This, in combination with being fully Basel II compliant, makes the application a very attractive and cost-effective solution for small to mid-sized financial institutions.
Visit www.versabanq.com for a demonstration of the AMS software, and download a sample copy of AmSchedule Express, an amortization tool that is part of Versabanq's AMS application suite.
About Versabanq Innovations Inc.:
Versabanq develops, markets, sells and implements software for financial institutions. Versabanq was established in 2006 as a subsidiary of Pacific and Western Credit Corp. (TSX: PWC), which is also the holding company for Pacific and Western Bank of Canada.
Pacific & Western, formerly a trust company and now a Schedule 1 bank chartered in 2002, has extensive experience developing innovative financial solutions for its partners and customers. Canada's first "branchless bank", the company is predicated on a business model which leverages the latest PC-based technologies, using custom designed software applications that are developed in-house and have been proven in use since 2000.
For further information: about Versabanq contact: Rick Hall, Principal, RICK HALL PR, Direct: (416) 967-0751, Cell: (647) 219-0691, rickhall@rickhallpr.com
© 2005 CNW Group Ltd, all rights reserved
Versabanq's Basel II-compliant asset management software set to help all financial institutions reap the business benefits of Basel II
TORONTO, Nov. 27 /CNW/ - All major Canadian "Schedule 1" (or "chartered") banks passed a significant milestone on Thursday, November 1 by becoming "Basel II" compliant.
Basel II is an accord that aims to create an international standard for national banking regulators to use when setting regulations about how much capital banks need in reserve to guard against financial and operational risks from their lending and investment practices.
The "Big Five" Schedule 1 chartered banks accomplished compliance following a major, multi-year, implementation process alone equal to the $750 million "Y2K" effort of Canada's chartered banks.(*) Now it is the turn of other Canadian financial institutions to meet the Basel II challenge. Basel II compliance can deliver significant business benefits and competitive advantage if implemented effectively. Canadian financial institutions such as the 1,595 credit unions and caisse populaires that serve over 10 million Canadians, trust companies, even some insurance companies and brokerage firms, now have the opportunity to "opt in" to reap the benefits of lower capital requirements and the business benefits of reallocating that capital that Basel II compliance enables.
"In theory financial institutions will benefit from adaptation of Basel II because compliance involves implementing analysis techniques that will increase an organization's understanding of its business, which leads to better risk measurement, risk management and more effective decisions," said Warren Shiau, Lead Analyst IT Research, The Strategic Counsel. "In practice, the system investment required for Basel II and its complex risk analysis methods can be a barrier to effective adoption at the credit union or caisse populaire level."
Featuring enhanced corporate risk measurement and risk management techniques to assess and track credit and operational risk, Basel II's adoption encourages use of more sophisticated capital-allocation and risk management calculations, which allow even smaller financial institutions to leverage their Basel II technology investment beyond mere compliance, and more efficiently allocate capital to benefit the bottom line.
London, Ontario-based financial software provider Versabanq Innovations Inc., in response to this opportunity, offers Basel II-compliant asset management software, Versabanq AMS (Asset Management System), a stand-alone software product. AMS is the result of five years of continuous development and "real-time" use by Pacific Western Bank of Canada and is well-suited to help small and medium-sized financial institutions, such as credit unions and others, better risk manage their complete lending portfolio, including term loans, leases, mortgages, and other assets.
"AMS, Versabanq's state of the art loan origination system,not only offers financial institutions a way to readily achieve Basel II compliance and reap the associated efficiencies, but also represents a versatile and powerful operational upgrade to their lending software," said Neil Beaton, President, Versabanq Innovations Inc. "Additionally, there is a significant cost savings as Basel II compliance is achieved by virtue of this Windows-based implementation, thereby avoiding significant additional investments and time spent on this endeavour."
Improved risk management of the credit decision-making process can enable financial institutions to better evaluate new business opportunities, and manage credit portfolios in an increased efficient and rational manner. As a result financial institutions can, with much greater ease, identify the target credit exposures that provide the best return relative to risk. Senior management is also empowered to proactively pursue business strategies that increase deal volume and maximize profitability within the boundaries of the institution's risk appetite.
(*) Canadian Bankers Association, Maclean's Magazine
About Versabanq's AMS (Asset Management System) product:
AMS was originally custom-built to manage a wide variety of large commercial loans and leases, but is extremely versatile and can handle virtually any kind of lending product. As a Windows-based loan origination system, it is very intuitive and easy to use. It is built around a clear workflow incorporating flexible role-based securities and features extensive reporting functionality. This, in combination with being fully Basel II compliant, makes the application a very attractive and cost-effective solution for small to mid-sized financial institutions.
Visit www.versabanq.com for a demonstration of the AMS software, and download a sample copy of AmSchedule Express, an amortization tool that is part of Versabanq's AMS application suite.
About Versabanq Innovations Inc.:
Versabanq develops, markets, sells and implements software for financial institutions. Versabanq was established in 2006 as a subsidiary of Pacific and Western Credit Corp. (TSX: PWC), which is also the holding company for Pacific and Western Bank of Canada.
Pacific & Western, formerly a trust company and now a Schedule 1 bank chartered in 2002, has extensive experience developing innovative financial solutions for its partners and customers. Canada's first "branchless bank", the company is predicated on a business model which leverages the latest PC-based technologies, using custom designed software applications that are developed in-house and have been proven in use since 2000.
For further information: about Versabanq contact: Rick Hall, Principal, RICK HALL PR, Direct: (416) 967-0751, Cell: (647) 219-0691, rickhall@rickhallpr.com
© 2005 CNW Group Ltd, all rights reserved
