Bank Analyzer (FS-BA)
Bank Analyzer supports risk and return management by calculating, measuring, and analyzing financial products. The structure of Bank Analyzer is based on the Integrated Finance and Risk Architecture (IFRA) and meets today's requirements (International Accounting Standards (IAS), Basel II, Risk Adjusted Performance Measurement, and Sarbanes-Oxley) for financial products.
Bank Analyzer is a family of products that consists of the following components
The division of the components ensures that data is stored in an integrated and consistent way. The system loads original data from operational systems or source systems into the Source Data Layer (SDL). The SDL is the original data basis for the processes and methods of Bank Analyzer. The valuation results of processes and methods are stored in the Results Data Layer (RDL). This structure ensures that original data, methods, and valuation results are clearly separated. The open, modular structure of Bank Analyzer supports a gradual implementation into existing system landscapes.
Bank Analyzer provides a consistent view of a bank's operational data and enables you to process data promptly so that you are always in a position to provide current financial and risk information. Results data is therefore always available for decision-making and for day-to-day business.
The figure below shows the structure of Bank Analyzer:
1. The SDL manages the basic data for the measurement of financial products. This data is loaded from the operational source systems by means of extraction, transformation, and loading (ETL) processes.
The SDL is the source for semantically integrated data for all valuation processes that are based on financial products, and is also a central consolidated source for analyses.
The SDL is not used to store data that has already been analyzed completely. Instead, this data is stored in the RDL.
2. The RDL manages consistent and reusable financial and risk data from various calculation and valuation processes for financial instruments and financial transactions.
3. Reporting and Analytics read results data from the RDL. The Analytics layer contains analytical applications that call results from the RDL and process them as required. This means that results data is analyzed specifically for each application.
4. Infrastructure and Tools provide central services and utilities for the various Bank Analyzer components.
In addition to the RDL, Bank Analyzer also has a Result Database (RDB). RDL and RDB are two different results databases where the system can store results data. The RDB is found in a variety of forms in Bank Analyzer. These forms depend on the various areas (Financial Accounting, Basel II). The RDL is a standardized results data store for accounting and risk-based analyses of financial transactions or financial instruments.
The integrated data store for product-based source and results data is based on SAP NetWeaver Business Intelligence technology. SAP NetWeaver is the basis for integrating Bank Analyzer in various IT environments and internal bank solutions.
Bank Analyzer contains the following solutions:
SAP Financial Database
The SAP Financial Database solution offers an extensive database infrastructure for analytical data and accompanying data processing systems. It is technically compatible with other SAP applications and with third-party applications.
SAP Financial Database uses the following Bank Analyzer components:
The system uses ETL processes to load original data from other systems or source systems into the SDL in the form of primary objects. Primary objects are a flexible way of storing master data and flow data in entities that belong together logically from a business perspective.
Results data from financial calculations and valuations are stored in the RDL in results data areas in the form of result types. The SAP Financial Database uses the SDL and RDL to support the extensive versioning and authorization concept. In the SDL it provides functions to support the principle of dual control. This means that you can define special release rules to protect certain processes.
Cash flow generation generates cash flows that are made up of a number of flows (for example, disbursement, interest, payment).
The correction server enables data flow management and records corrections to find and display any inconsistencies. The correction server records corrections and can find and display any entities belonging to these corrections, provided the relevant system settings are made.
SAP Basel II
The SAP Basel II solution supports the Basel II regulations for risk and capital adequacy management as well as new supervisory review and disclosure processes. The solution integrates both internal and external credit risk management on a central platform. Bank Analyzer supports all methods for calculating credit risk, from the standardized approach to the IRB advanced approach.
In addition, the software covers the local requirements for the EU Directive and the German Solvency Regulation. You can use Customizing settings to define whether the calculation is for Basel II, the EU Directive, or the German Solvency Regulation.
The system runs the calculation not only for real data, but also for stress data (for example, changes in the ratings of sovereigns or business partners).
The SAP Basel II solution uses the following Bank Analyzer components:
SAP Accounting and Financial Instruments
The SAP Accounting and Financial Instruments solution supports compliance with the International Financial Reporting Standards (IFRS) and local accounting standards.
In this scenario you use Bank Analyzer as a subledger for the accounting of financial instruments. You transfer financial instrument data to the Bank Analyzer system here. You can then post and price the related business transactions, aggregate documents, and transfer them to the general ledger. You can also create the financial statements for the end of the period. You can link the hedging relationships between financial instruments, test the effectiveness of the hedging relationships as per the accounting rules, and create accounting documents for the hedged items.
In addition to the SDL and the RDL, the subledger scenario uses the following components:
SAP Accounting for Financial Instruments is released for volumes of up to 1 million financial transactions only. If the volume of your business exceeds 1 million transactions, a fit/gap analysis is required. For more information, contact your SAP account executive, or create an OSS message under component FS-BA.
You can use this scenario to process financial instruments in accordance with IFRS, determine financial reporting data, consolidate data from individual companies, and create company reports. The system merges the calculated IFRS data with the local GAAP (Generally Accepted Accounting Principles) data and calculates the required financial statement items. You can link the fair value hedging relationships between financial instruments, test the effectiveness of the hedging relationships as per the accounting rules, and create accounting documents for the hedged items. You can display the results in reporting.
The merge scenario stores results data in the RDB.
SAP Hedge Management
The SAP Hedge Management solution handles all hedging activities in line with IAS 39. Bank Analyzer covers fair value hedges, cash flow hedges, and portfolio fair value hedges. The system identifies hedged objects and hedging instruments, and maps these as hedging relationships in line with IFRS. Bank Analyzer provides prospective and retrospective effectiveness tests, and extensive functions for hedge accounting.
SAP Profitability & Management Accounting
This solution comprises scenarios for profitability analysis. Profitability analysis measures the indirect costs and income generated by each transaction in the bank's retail business. These include cash-flow-based financial transactions such as loans and accounts that can be measured on the basis of periodic volume information. The indirect costs and income to be measured are funding costs, funding revenue, and the standard costs for the following components: process costs, risk costs, and the cost of equity.
● Profitability analysis with accounting function (integrated accounting for financial products)
You can use this scenario in conjunction with the subledger scenario for financial products only. It allows you to integrate financial accounting and management accounting. The integrated accounting scenario allows you to create income statements and balance sheets for organizational units such as business units or profit centers.
● Profitability analysis without accounting function
In this scenario, you supply direct costs from source systems and use the profitability analysis functions without the Bank Analyzer component for accounting processes.
SAP Profitability Analysis & Management Accounting and SAP Limit Manager are released only for volumes not exceeding 300 000 transactions. If the volume of your business exceeds this, a fit/gap analysis is required. For more information, contact your SAP account executive, or create an OSS message under component FS-BA.
See the note under SAP Profitability Analysis & Management Accounting.