BCAR Basel Capital Adequacy Requirements solution

Generally, all Canadian banks, bank holding companies, and federally regulated trust and loan companies are required to comply with the Basel Capital Adequacy Requirements (“BCAR”). Branches of foreign banks are exempt from this reporting requirement. BCAR calculates the capital to risk-based asset ratio and asset-to-capital multiple of the reporting institution and is required to be filed with the Office of the Superintendent of Financial Institutions (“OFSI”) on a quarterly basis. There are two broad methodologies available for calculating the capital requirements – the standardized and the internal ratings based (“IRB”) approaches. Prior approval from OFSI is required in order to use IRB.

BCAR calculations can be very complex as they require accessing multiple data sources along with complex calculations in order to complete all of the necessary BCAR requirements. AxiomSL’s approach provides seamless data integration across multiple business functions on a single platform and enables financial firms to quickly address regulatory changes. These features, coupled with automated validation and reconciliation, provide organizations and regulators with confidence in the accuracy, transparency and control levels of their entire process.

• Aggregation enables detailed views by any grouping criteria
• Disaggregation enables drilldown into granular data
• Flexible, auditable, performance-driven; high volume
• Multi-level sign-off with alerting
• Pre-submission report review
• Secure, controlled, permissioned environment

• Data integration from disparate sources and formats
• Unrivalled transparency with drilldown to source data
• Robust archiving and versioning
• Seamless interface with existing systems/ processes
• Scales across lines of business and jurisdictions
• Scenario analysis and stress-testing capabilities
• Robust change management: sources, business rules, workflows
• Extensive data validation and report edit checks
• Increases accuracy, engenders confidence