Oracle Financial Services Loan Loss Forecasting & Provisioning

The Oracle corporation submitted in the summer of 2012 the Oracle Financial Services Loan Loss Forecasting & Provisioning analytical application designed to help financial institutions to predict precisely loan losses and to expect reserves their covering for simplification of observance of the latest regulatory requirements. It is reported that in it the preconfigured design models and functions of stress testing which allow financial institutions to predict effectively credit losses using basic and a row alternative a stress scenarios are put and also to calculate loss reserves on the credits according to requirements of international accounting standards and financial statements (International Accounting Standards/International Financial Reporting Standards, IAS/IFRS), Basel III and the legal act of Dodd-Frank Act.

Affirms also that using this application financial institutions can, using the advanced methodology of modeling of cash flows, to provide compliance to requirements of IFRS and Basel III regarding methods of "countercyclical reservation" (counter-cyclical provisioning). In it pro-active approach to ensuring compliance to regulatory requirements and corporate strategies of risk management is used. The generation engine of cash flow embedded in the application allows financial institutions to manage effectively planning of the capital and to make the justified strategic decisions on credit losses and reserves on their covering by all types of credit products. Experts can analyze credit reserves and trends using a big set of the preconfigured dashboards and reports containing information necessary for adoption of the justified and anticipatory decisions.