Moody’s Analytics unveiled an enhanced version of RiskFoundation, its risk management platform, on Tuesday to assist banks with data and reporting requirements mandated under the Dodd-Frank Act.
Under Dodd-Frank, bank-holding companies with consolidated assets of $50 billion or more and non-bank financial firms deemed “systemically important financial institutions” by the Financial Stability Oversight Council are required to undergo annual supervisory stress tests and semi-annual company-run stress tests.
Bank-holding firms with consolidated assets of between $10 billion and $50 billion, as well as savings and loan holding firms and state member banks with more than $10 billion in consolidated assets, are required to undergo annual company-supervised stress tests starting this year.
Moody’s RiskFoundation version 1.3 integrates data modeling systems and reporting solutions to help banks meet Dodd-Frank stress test requirements. The new solution uses 2013 economic scenarios released by the Federal Reserve and allows risk professionals to manage the data and automate models.
“Designing a comprehensive stress testing program can significantly reduce the cost of implementation, make results more organizationally meaningful and ease translation of results into a bank’s risk appetite statement and capital planning process,” Moody’s Senior Director Eric Ebel said. “RiskFoundation helps financial institutions to continue enhancing their capital management and related validation processes by providing a fully automated solution for data management and reporting.”