SAS^® Solutions Help Meet Requirements of US Economic Recovery Programs

Meet TARP and Financial Stability Plan requirements for transparency, disclosure, reporting and more

The US Department of the Treasury's Troubled Asset Relief Program (TARP) and the recently announced Financial Stability Plan include many new requirements for participants. SAS solutions can help your institution meet these requirements in each of the following areas.

Increased Transparency and Disclosure

SAS solutions directly address the increased disclosure requirements associated with regulatory compliance. Your institution can quickly consolidate and analyze both structured and unstructured data using SAS' integrated capabilities, so you can provide disclosures to regulatory authorities based on reliable and consistent information.

• Regulatory Compliance (PDF)
• Enterprise Data Integration
• Enterprise Reporting

Assessment of Balance Sheet Exposures

SAS Credit Risk Management for Banking helps you accurately forecast, measure, monitor and report risk exposures across the entire institution. Gain a consolidated view of all types of risks (credit, market, counterparty and liquidity) to maintain the health of your institution and meet federal requirements. Perform integrated asset/liability risk management. Calculate and report on regulatory capital (COREP).

Stress Testing

SAS Credit Risk Management for Banking also facilitates stress testing, including the ability to create discrete test scenarios and utilize Monte Carlo simulation techniques. Model and test individual portfolios or all portfolios owned by your institution. Test exposure from counterparties. Assess firmwide risks using techniques including economic capital, correlated aggregations and bottoms-up correlated risk drivers. Validate stress testing models using model backtesting.

Reporting Use of Government Capital for Lending

SAS Credit Risk Management for Banking as well as our enterprise reporting solutions help you directly track and report on your institution's use of government capital for lending. Aggregate data across legal entities to provide a complete picture of government capital utilization in a manner that allows comprehensive auditability.

Executive Compensation

SAS offers a solution for Risk Adjusted Performance Measurement (RAPM), which links risk and return to strategic and operational decision making in order to meet expectations of regulators, investors and rating agencies. The SAS solution for RAPM provides a methodology for the attribution and allocation of economic capital (EC) and allocated costs at the product, division and portfolio levels. Risk can be related to profitability, allowing banks to manage capital and the inherent risk/return trade-offs to meet regulatory requirements.

The solution, in conjunction with SAS Credit Risk Management for Banking and SAS Financial Management for financial forecasting, helps financial institutions aggregate risk exposures and measure performance across diverse products on a consistent basis. The solution also enables the linking of risk to profitability and incentive compensation by aggregating risk exposures and measuring performance across diverse financial products. The SAS solution utilizes Risk Adjusted Return on Capital (RAROC) and Net Income after Capital Charge (NIACC) techniques to provide a long-term view of true capital return within your institution.

Small Business and Community Lending

SAS solutions enable effective credit performance reporting so you can more quickly assess and report on the status of lending efforts to meet upcoming regulatory requirements.

• Credit Risk Management
• Credit Scoring
• Fair Banking

Homeowner Affordability and Stability Plan

This recently announced plan will require increased assessment and analysis of existing mortgages by lenders and servicers. SAS has solutions that help your firm do the required analysis and provide reports back to authorities on loan modifications.

• Credit Risk Management
• Credit Scoring
• Fair Banking

Looking for more information on SAS solutions for financial services? Read the special report "Banking on Intelligence – Increasing Share of Wallet and Managing Risk." Sign up for our free Financial Services e-newsletter. Read related success stories. Ready to put The Power to Know® to work for you? Contact your local SAS office or call us toll free at 1-800-727-0025 (U.S. and Canada). Contact SAS for pricing information and to learn more about our products and solutions.		Download FREE special report "Banking on Intelligence – Increasing Share of Wallet and Managing Risk"