Credit risk analytics expert, Jaywing, has announced a new partnership with specialist SME bank Hampshire Trust Bank (HTB).

Increasing regulatory demands on small banks via their ICAAP and SREP poses new challenges to firms who need to be able to actively identify, understand and manage all aspects of risk that their organisation faces in the running of their business. In particular, more emphasis is placed by the regulators on firms’ stress testing capabilities and their ability to quantify the impact of adverse economic conditions on their capital requirements.

Jaywing has helped HTB improve their credit risk modelling capability enabling the delivery of higher quality management information, and robust stress testing models that can be used alongside the depth of expertise within the internal teams to support improved assessment of portfolio losses in downturn conditions.  This has played a key role in shaping HTB’s 2018 ICAAP exercise and in improving credit risk modelling.

Hampshire Trust Banks’s Chief Financial Officer, Tim Blackwell, said, “Jaywing has significant experience in credit risk modelling, stress testing and capital planning. What made them stand out was their knowledge of ICAAP requirements, their client engagement approach and their commitment to deliver on all aspects of the plan, collaborating seamlessly with the internal teams and supporting us on our journey of continuous improvement and development.”

Ben O’Brien, Managing Director, Jaywing, said: “Regulatory demand processes can be time-consuming, complicated and frustrating for businesses, which is why firms such as Hampshire Trust Bank are implementing our expertise and guidance to ensure their credit risk models are consistently accurate. We are delighted to partner with HTB to create more streamlined and efficient processes.”