Danske Bank Completes First Phase of Economic Capital Project with Algorithmics

Algorithmics has announced that Danske Bank has completed the first phase of an economic capital project that will help the bank meet the Pillar 2 requirements of the Basel accord. This is the latest in a series of Algorithmics implementations at Danske, which include market risk, collateral management, exposure calculation and limits management projects. “Danske Bank uses economic capital to manage its business,” commented Erik Frandsen, first vice president at Danske Bank. “Having a risk-sensitive measure tied to other key elements of our risk infrastructure, such as exposure management and Basel II data warehouse, will improve the information quality and hence our decisions based on this information.”

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