Basel II, 2.5 & III

Vichara leverages its expertise in risk management, financial modeling and big data management to provide highly transparent regulatory solutions.

Vichara’s high performance modeling framework coupled with the highly scalable analytics framework facilitates forward looking performance analysis on credit portfolios comprising of loans (residential mortgages, commercial mortgages, & corporate loans) and structured products (RMBS, CMBS, CLOs, ABS CDOs, SLABS, and other consumer ABS). Vichara’s modeling framework helps develop historical regression based models to predict future performance correlated to macro-economic factors.

Vichara solutions help with the following Basel requirements:

  • Capital Adequacy Assessment

Vichara helps its clients to compute capital adequacy reserves needed to comply with various Basel accords.

We enable financial institutions to carry out comprehensive stress tests to capture the effects of credit risk events using both Internal Rating-Based Approach (IRB) as per Internal Capital Adequacy Assessment Process (ICAAP) requirements for Basel II as well as risk weighted assets methodology as required by Basel III.

  • Stress-testing

Vichara’s solutions help clients perform forward looking risk assessment and measure risk tolerance in adverse scenarios on their portfolios as required by stress tests. Our solutions incorporate macro-economic variables that allow uses to easily define stress scenarios to emulate different types of shocks. The solutions are highly transparent and defendable to withstand any internal or external audit.