RBI

Heckyl RAS Perfect Partner for UCBs to Adopt System-based Asset Classification

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Heckyl Risk Analytics System (RAS) is the first of its kind innovative application that offers a 360-degree view on the portfolio of companies and individuals through analysis of the traditional and alternative datasets.

On Wednesday, the Reserve Bank of India asked urban cooperative banks (UCBs) to undertake the system-based asset classification from Jun. 30, 2021, to improve efficiency and transparency.

RAS runs hundreds of business rules on the various datasets such as financials, news, provident fund, GST, directors, ownership, credit rating, etc. to derive the overall risk score for each company/ individual from the portfolio. Based on the overall risk score, the portfolio companies are bucketed into a high, moderate, and low-risk profile.

In our view, RAS can act as the perfect system for UCBs to classify their assets into a. Standard Assets; b. Sub-standard Assets and c. Doubtful Assets.

Here, we have presented the Highlights screen of RAS for the portfolio of Nifty50 index companies.

Highlights screen

RAS not only provides the risk overview on the portfolio companies but also offers the option to dig deeper for the company level analysis. There are several other features (such as RBI Alerts screen, daily email newsletters for updates on portfolio companies, etc.) integrated into Heckyl’s application to make RAS a perfect partner for all types of banks.

To know more about Heckyl RAS, email us at info@heckyl.com.

 

Should the Fed hike rates? Cues for the Global Markets ahead : Part I – Thinking like the Fed

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US-federal-reserveWith low inflation and falling inflation expectations, the Federal Reserve is believed to execute a rate hike this year. The funds rate is the mechanism the Fed uses to regulate short-term interest rates in the economy, which in turn moves across the yield curve.

The Fed has two objectives: stable prices and firm economic growth. The Central banks stimulate the economy by cutting rates when the economy is slowing down. While lower rates can bring economic growth, they mostly come with an inevitable consequence: Inflation.  Read the rest of this entry »