Deutsche Bank last week announced it has launched a unique credit risk management system in Sri Lanka that provides local banks with a new way of processing loan applications and managing credit risks on their balance sheets.

Known as the Comprehensive Approval System (COMPAS), it is designed to help banks in Sri Lanka streamline the processing of new loan applications from small and medium businesses by automatically evaluating each application based on a comprehensive range of risk criteria.

Stefan Mahrdt, Chief Country Officer for Deutsche Bank in Sri Lanka, said: “COMPAS is a means for banks in Sri Lanka 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 business 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”, Mr Topp added.

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.

Deutsche Bank is a leading global investment bank with a strong and profitable private clients franchise. A leader in Germany and Europe, the bank is continuously growing in North America, Asia and key emerging markets. With 75,140 employees in 75 countries, Deutsche Bank offers unparalleled financial services throughout the world. The bank competes to be the leading global provider of financial solutions for demanding clients creating exceptional value for its shareholders and people.