500 credit managers and the staff of department of corporate risks of PSB work in SAP Bank Analyzer

In the spring of 2016 SAP and Promsvyazbank completed implementing solution for management of limits based on the Limit Manager system which is a part of the SAP Bank Analyzer 8.0 platform. Promsvyazbank one of the Russia's first beginnings to use the SAP Bank Analyzer platform. The solution helped bank to strengthen control over the transactions bearing credit risk.

The SAP Bank Analyzer system integrated with the portal and the accounting systems of bank by means of SAP PI provides maintaining the complete information on limits and sublimits, calculation of cumulative limits, for example, of groups of borrowers, recalculation of currency limits and also performs receiving up-to-date data about operations with the signed agreements from the systems of bank in real time with the subsequent recalculation of use of limits.

The possibility of data acquisition in real time is one of the major project deliverables: it allows to reduce significantly risks of exceeding of the set limits of different types and at the different levels. The implementation project is executed by the joint SAP Service and Support and Technoserv Consulting command.

More than 500 credit managers and the staff of department of corporate risks of Promsvyazbank work with a management system for limits: process requests for the products bearing credit risk, analyze a portfolio of transactions, adjust and monitor accomplishment of conditions of decisions on limits and providing products to clients. In plans of bank — further development of the implemented solution, such as expansion of structure of limits on new types of portfolio limits.

In general the SAP solution Bank Analyzer allows to optimize credit process of bank and, respectively, to minimize its risks: to manage flexibly structure of limits of risk, including at change of methodology, automatically in real time to calculate limits of different types and their use depending on the factors determined by methodology, to control limits on not exceeding.

Management of limits — one of tasks with high risks for banks. Analysts S&P predict that in 2015-2016 the volume of overdue loans in the Russian banks will increase to 12–14% (from present 8.2%), and a number of experts consider that this indicator is about 20% already today. Creation of an effective control system of limits is important practically for all banks. In Promsvyazbank when forming limits over 150 parameters – obviously are considered that it is impossible to work with such information volume without automation especially as customer requirements to the speed and service quality constantly grow.

"Automation of process of management of limits — an important part of increase in process performance of risk management, credit monitoring and the reporting. SAP Bank Analyzer allows to integrate these processes, providing the complete and operational analysis of all crucial parameters, simplification and acceleration of work of users, decrease in operational risks" — emphasized Inabat Torok, the head of the Risks block of Promsvyazbank.