As the end of Libor draws closer, banks are making plans to upgrade their vendor-provided risk management systems to be able to handle backward-looking rates. But overhauling creaky loan systems is no simple task, as firms are discovering. “There is a significant amount of lead time to get your lending systems up and ready,” says a senior source at a US investment bank. “It’s not as simple as just building a new curve as it is on the derivatives side. It’s a lot more complicated than that.” Th Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content. To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe You are currently unable to print this content. Please contact [email protected] to find out more. You are currently unable to copy this content. Please contact [email protected] to find out more.
Companies are finding the process of developing vendor - provided risk management systems for lending operations to manage backward - bound risks much more complicated than building a new system , according to Risk.net .