PRA & EBA Stress Tests

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

Stress Testing

For UK and EU financial institutions, Vichara provides solutions to perform stress tests as mandated by the Bank of England’s Prudential Regulation Authority (PRA) and the European Banking Authority (EBA). The tests are conducted using consistent methodologies, scenarios and key assumptions as mandated by respective regulatory authorities.

Vichara works closely with its clients to implement highly transparent, defendable and auditable solutions. Using our high performance and cost efficient solutions for loans and structured products, our clients can analyze large portfolios in short periods of time. Highly modular architecture allows us to integrate client’s proprietary credit models. Additionally, using Vichara’s modeling framework, clients can build new predictive credit models or extend and fine-tune existing models.

We help our clients formulate and execute stress analysis using scenario definitions provided by PRA or EBA. In addition, Vichara also helps clients analyze portfolio performance under additional scenarios as per client`s own macroeconomic views. Our solutions enable our clients to attribute performance to various risk factors. The solutions also provide high level of flexibility to integrate with client`s internal processes and meet future requirements from regulators.