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About Moody's KMV |
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Client Spotlight |
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"Given the experience with the UK model, it was a simple decision to move toward using RiskCalc for France, Italy, South Africa, Spain and the U.S., as the models capture local default risk factors with a common global metric in markets where the lack of internal data makes it difficult for us to build and validate our own models."
- Ian Wilson
Barclays |
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Learn More |
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Contact Us today to see why Moody's KMV is the right choice.
For more information about Moody's Investors Service, visit the Moody's Web site. |
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Barclays Bank, a leader in credit risk management, has taken on one of the greatest challenges for a financial institution: gaining compliance with the Basel II Advanced approach. To realize this goal, it needed a unique solution to enhance its ability to analyze the probability of default of small and mid-sized private firms with a level of capability that its internally built models were unable to match for new customers.
After reviewing a range of alternatives, Barclays chose Moody's KMV RiskCalc® 3.1 United Kingdom because it met their requirements for superior performance including accuracy, user friendliness and ease of implementation.
Ian Wilson, Senior Analyst at Barclays, talked about the bank's decision to go with RiskCalc: "We chose Moody's KMV RiskCalc UK for two main reasons: power and practicality. The model demonstrated strong performance compared to internally built models, since it utilized forward-looking equity market-based data. With Basel II Advanced status in mind, we could also see that continual development and internal control of the model by Moody's KMV would provide a cost-effective solution."
After Barclays evaluated the RiskCalc UK model, they asked the Moody's KMV Validation/Calibration team to benchmark their internal models against it; a process that is integral to compliance with Basel II Advanced requirements.
In addition to RiskCalc, Barclays also uses Moody's KMV public firm models to assess its corporate and wholesale customers and capture the probability of default of these firms across a broad spectrum of industries and countries.
Ian described why Barclays has had a relationship with Moody's KMV that spans more than a decade: "The team we deal with at Moody's KMV has a strong relationship approach, which is important to us," he observed. "We are a large and geographically diverse business and need a coordinated approach to our dealings with a vendor whose models we use at multiple sites around the globe. Both the central relationship and the technical support teams provide us with high quality support." |
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