Case Study — 22 Nov, 2021
A Chinese Bank Takes Steps to Minimize Risks as it Supports International Trade
Highlights
The bank was worried about potential risks associated with issuing LCs that would be fulfilled by other banks. Deep financial data and tools were needed to support its due diligence efforts.
Pain Points
Members of the international trade department had been using a third-party data provider to obtain financial information on public and private banks needed to vet creditworthiness. The information was spotty, however, and it was burdensome to manually collect additional data to fill in the gaps. The analysts wanted access to a more comprehensive and reliable source that would provide:
- Data from primary financial statements.
- Loan quality and bank capital adequacy insights.
- Banking industry aggregates and rankings.
- Detailed ownership information.
- Credit rating profiles and debt maturities.
- Key developments and timely news.
In addition, team members needed handy tools to efficiently assess their clients’ situations. This included the ability to:
- Set up counterparty lists and monitor important events through alerts.
- Easily customize reports.
- Access financial modelling and workflow automation capabilities.
S&P Global Market Intelligence (“Market Intelligence”) was contacted to discuss the company’s offering in this area.
The Solution
Market Intelligence provides a single online source for reliable data on worldwide banks, all in standard formats. Pre-built templates and instant currency conversion automate individual bank evaluations and support apples-to-apples peer comparisons. Users can access financial statements, ratios, and multiples, plus press releases available within hours of publication. In addition, click-through functionality enables users to review detailed footnotes for most line items. This solution would enable the international trade department to:
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Thoroughly assess a bank’s creditworthiness |
Market Intelligence’s Financial Institutions Dataset lets users screen for banks that meet certain criteria, such as asset size and geography, and obtain news and analysis for different markets to understand the current situation. It also enables users to:
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Customize reports |
Report Builder enables users to customize, save, and export reports to PDF, Word, or Excel®, or share with colleagues for easy collaboration and knowledge transfer. |
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Leverage formulas and models |
An Excel Add-In and suite of office tools seamlessly powers proprietary models and streamlines presentations. Users can access a library of hundreds of ready-to-use models and templates, or partner with Market Intelligence’s support analysts to build their own. It is possible to refresh formulas in Excel with just one click. |
Key Benefits
Members of the international trade department thought the Market Intelligence offering would enable the bank to fully vet other institutions before issuing LCs, helping to minimize unwanted exposure. The department subscribed to their Financial Institutions Dataset seeing many benefits, including the ability to:
- Have one comprehensive source of data with extensive financial details on both domestic banks and those around the world to assess the quality of loan books and overall creditworthiness.
- Save time by accessing standardized information that accounts for different currencies and aligns U.S. GAAP, IFRS, J-GAAP, PRC, and other country-specific fields.
- Utilize a wide range of automation tools to create refreshable financial models and customized reports, and easily link data between Excel, Word, and PowerPoint.
- Trust data reliability given Market Intelligence’s three-tiered data approval process that includes 15,000 automated error checks plus manual inspection.
- Count on a highly responsive customer support group that is available to address questions as they arise.
Click here for more information on the datasets described here.