Basel II may turn cost into investment

Companies and loans belong to each other just like banks and Basel II. But in order for the rating to be in line with Basel II, a dynamic analysis and evaluation of business figures is necessary. The more work processes and operational data are seized and processed electronically, the more easy will be this analysis.

Companies which consistently carry out their administrative and planning work as well as customer relation management via e-business, automatically comply with a main rating prerequisite. Their business figures present transparency and are available on a consolidated basis at any time. Precondition is a consistent configuration as well as a uniform basis of their data processing system. Not every e-business software complies as thoroughly with this requirement as the E-Business Suite by Oracle.
An investment into such a software will pay off much more than is apparent at first sight. Not only the rating costs will be reduced by the use of e-business software and the business processes optimized, but in the wake of the optimization the rating will become higher, which in turn will lead to cheaper lending rates. This advantage can be estimated in advance together with the bank. Depending on the period of time taken into account, not only will the investment pay off, but it will also lead to an increased rate of return.
Seldom companies are offered such an opportunity to turn apparent disadvantages into genuine advantages. GERMAN