Deutsche Bank on Monday announced that it has launched a unique credit risk management system in Pakistan that provides local banks with a new way of processing loan applications and managing credit risks on their balance sheets.
The system's launch comes as Pakistan's growing economy continues to support demand for credit, with domestic lending in 2007 rising to over Rs 3.5 billion, according to the State Bank of Pakistan.
Known as 'Comprehensive Approval System' ('Compas'), it is designed to help banks in Pakistan to systemically cope with the increase in demand for new loans from small and medium businesses by automatically processing applications against a comprehensive range of risk criteria.
Shazad Dada, Chief Country Officer for Deutsche Bank in Pakistan, said: "'Compas'is a means for banks in Pakistan to streamline loan processing systems, potentially lower processing costs, while improving overall risk management and advancing credit quality".
Wolfgang Topp, Head of Risk Management Advisory at Deutsche Bank, said: "Used in conjunction with Deutsche Bank's risk advisory services, 'Compas' is a powerful tool which can enable local banks to maximise risk efficiencies and increase the quality of assets they hold on their balance sheets".
'Compas' is a web-based credit assessment system that can be individually tailored to a bank's specific risk profile. It assigns loan applications from small and medium-sized businesses with an internal credit rating, based on a range of comprehensive risk criteria. Based on this rating, 'Compas' will automatically assess the application, or advise for it to be deferred to management for further evaluation.
"'Compas' is unique in that it can be tailored to the individual credit and risk needs of the bank employing the system. No other credit management system offers this flexibility", Topp said.
'Compas' is an integral part of Deutsche Bank's integrated risk management advisory service, which is designed to help banks price, manage and distribute balance sheet risk and improve lending systems. The Bank can also manage portfolios of non-performing loans, balance provisioning and assist with Basel II requirements.-PR