Moody's Analytics Partners with Dubai Islamic Bank to Provide Credit Risk Assessment Tool

Strategic Insights -

Moody's Analytics, a leading provider of research, data, and analytic tools, has entered into an agreement with Dubai Islamic Bank to provide its credit risk assessment tool, RiskAnalystao. This partnership underscores Moody's Analytics' leadership in the Middle East as a pre-eminent provider of credit risk management systems to financial institutions. Dubai Islamic Bank's decision to partner with Moody's Analytics supports its strategy to strengthen its credit risk assessment processes and equip its credit risk teams with "best-of-breed" solutions.

Key Takeaways:

  • Moody's Analytics' RiskAnalystao is a robust, enterprise-wide credit risk management system that collects, analyzes, and stores financial and non-financial information, providing a complete solution for managing and analyzing risk for firms of all sizes.
  • The tool will be used by Dubai Islamic Bank to assess the bank's credit relationships with its clients in the Corporate, Contracting, SME, and Commercial Real Estate sectors.
  • RiskAnalyst is powered by a centralized database that brings together the inputs required for an internal rating system, enabling model development and evaluation.
  • The solution includes the development of an internal rating model for unrated financial institutions, which will build confidence in the credit initiation process and provide greater speed, accuracy, and consistency across the enterprise.
  • Dubai Islamic Bank aims to achieve Basel II compliance under the IRB approach in 2011, and Moody's RiskAnalyst will enable the bank to present a statistically validated model with adequate data within the regulator's timeline.
  • Moody's Analytics is committed to serving the Middle East and has already provided risk management solutions to most key players in the market.

Statistics:

  • Dubai Islamic Bank has over 100,000 clients across various sectors, including Corporate, Contracting, SME, and Commercial Real Estate.
  • Moody's Analytics has reported revenue of $2.3 billion (2007) and employs approximately 3,600 people worldwide.
  • Moody's Analytics maintains a presence in 29 countries and has a significant market share in the credit risk management systems market.
  • Dubai Islamic Bank aims to achieve Basel II compliance by 2011 and plans to expand its operations into regional and international markets.
  • Moody's Analytics has a strong presence in the DIFC, with a separate office from Moody's Investors Service, its sister company.

Sources:

  • Dubai Islamic Bank
  • Moody's Analytics
  • Al Bawaba
  • The Banker magazine
  • Islamic Finance News
  • Euromoney
  • Albawaba.com