Lloyds TSB has selected Reveleus Basel II Solution to help its Securitisation Team meet Basel II compliance requirements.

The new capital adequacy rules under the Basel II accord are due to be in place by 2007.

The new software will bring policies and methodologies into accordance with standards outlined by the Financial Services Authority (FSA).

Basel II Solution centres on a calculation engine which aims to ease the complexity of adopting the new Internal Ratings Based Approach for Credit Risk. Multi-jurisdictional data from the Securitisation team and apply capital adequacy calculations. These in turn will be rolled up into the banks corporate Basel II framework.

Securitisation essentially means financing a specific portfolio of assets on a non-recourse basis.

 "We chose Reveleus because they demonstrated a thorough understanding of the capital adequacy calculations needed for complex securitized products which we offer our clients," said Mr. Mark Escott, Director, Head of Securitisation. "They also met our requirement of a company which shares in our commitment to meet the disciplined standards set by the Basel II accord and the FSA." 

Commenting on the win, S. Ramakrishnan - CEO of Reveleus, said, "We are thrilled to have the opportunity to enhance our current relationship with Lloyds TSB and assist them to meet the challenges of Basel II. Lloyds TSB's selection of the Reveleus Basel II solution is indicative of the deep functionality needed in the specialized Securitisation business and our capability to grow with the evolving risk management practices." 

Related Articles
Fannie Mae Risk
Citigroup and Reveleus
Algorithmics and Citigroup Credit Risk Model
Basel II Glossary
Internal Control and Invoicing
Basel II Banks Having Doubts