The performance tests were designed to model the Bank for International Settlements’ (BIS) Advanced Internal Ratings-Based (AIRB) approach, which also serves as the foundation for regulatory capital calculations at many tier-one financial institutions.
Specifically, Oracle Reveleus Basel II, running on the Oracle Exadata Database Machine X2-2 computed risk-weighted asset calculations on 65 million exposures in only 1 hour and 29 minutes. This reflects the exposures typically found in the world’s largest diversified financial institutions.
With the extreme performance of Oracle Financial Services Analytical Applications, running on the Oracle Exadata Database Machine X2-2, global financial institutions can dramatically reduce the lead times required to perform key analyses like stress testing, liquidity risk management and profitability and respond to increasing regulator demands, like Basel III.
Need for High-Performance Risk, Compliance and Regulatory Reporting
The regulatory reporting cycle is often a very demanding and time-consuming period for financial institutions. As highlighted in the recent Oracle industry survey, “The European Confidence Report,” current approaches do not allow time for results analysis, while long lead-times and system-performance bottlenecks leave little room for error.
The extreme performance on Oracle Exadata Database Machine X2-2 also creates new flexibility to help institutions comply with increasingly complex regulatory processes for capital requirements that often require multiple resubmissions with changes to assumptions and calculations. New regulations like Basel III require institutions to perform additional advanced analytical practices.
Oracle Reveleus Basel II is part of the Oracle Financial Services Analytical Applications family of Risk, Finance, Compliance and Customer Insight solutions, and currently used by demanding tier-one institutions around the world.
Testing was completed using a full-rack Oracle Exadata Database Machine X2-2 running Oracle Database 11g and Oracle Real Application Clusters with the Oracle Reveleus Basel II and the application tier running on Oracle's Sun SPARC Enterprise M9000 server running Oracle Solaris.
Built using industry standard hardware components plus FlashFire technology from Sun, and intelligent database and storage software from Oracle, the Oracle Exadata Database Machine powers the largest and most important OLTP and data warehousing applications up to 10x faster than before.
“The combination of Oracle Financial Services Analytical Applications and Oracle Exadata Database Machine X2-2 enables banks to access regulatory capital computations within the same day – eliminating the lengthy waits of the past. Also, stress testing and advanced capital adequacy practices, like those required by Basel III, now become possible. The performance tests of Oracle Reveleus Basel II running on the Oracle Exadata Database Machine X2-2 clearly demonstrate the analytical processing power that customers can leverage to address the increasing demands of regulators and other stakeholders,” said S. Ramakrishnan, general manager and group vice president, Oracle Financial Services Analytical Applications.
Oracle Financial Services Software Limited (referred to as "Oracle Financial Services Software") (Reuters: ORCL.BO & ORCL.NS) is a world leader in providing products and services to the financial services industry and is a majority owned subsidiary of Oracle. Oracle (NASDAQ: ORCL) is the world’s most complete, open and integrated business software and hardware systems company. For more information, visit www.oracle.com/financialservices
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