Risk Analysis Service (RAS) For Commercial Real Estate
From the May Issue of the RMA/AFS Credit Risk Benchmarks Report for 4Q08
The Risk Analysis Service (RAS) has released its 1Q09 data on commercial credit risk for 17 leading financial institutions
The Risk Management Association and Automated Financial Systems' Risk Analysis Service Fourth Quarter Metrics Reflect Borrowers' Elevated Utilization of Lines of Credit
Risk Analysis Service to Offer Commercial Credit Risk Benchmarking for Community Banks
Read what Mr. Barrento of Santander says about the Risk Analysis Service.
See what Mr. Giesecke from UniCredit has to say about the Risk Analysis Service
Take the RAS virtual tour now
Market volatility is driving a new set of priorities among U.S.-based commercial real estate (CRE) lenders. With CRE concentrations and related exposure to capital at historic highs, CRE portfolios are undergoing greater scrutiny and expectations for more sophisticated risk management techniques and tools continues to grow. For CRE lenders and risk managers, having regular streams of comparative, actionable market information on the CRE portfolio can accelerate an institution's ability to demonstrate new levels of risk identification, measurement, management, and control.
As the country's only comprehensive, industry-standard credit risk benchmark, RAS CRE addresses this need from a vantage point that crosses the portfolio. With standardized terms and key risk parameters set and defined by a Steering Committee comprised of leading U.S. CRE lenders, RAS CRE serves as an independent, member-driven credit data consortium that bridges the gap between institutional and industry-wide CRE risk intelligence that drives continuous improvement and competitive advantage.
Why RAS
Leading U.S. CRE lenders rely upon RAS CRE for gauging their performance in relation to with other institutions and the market as a whole. The data extracted from member banks' lending systems and data warehouses delivers uncommon depth and breadth that facilitates detailed benchmarking analysis. RAS CRE provides an ongoing ability to monitor an institution's relative exposure to risk in key portfolio segments and to manage policy limits, compliance, and market expectations accordingly.
RAS CRE focuses on those loans that are particularly vulnerable to cyclical CRE markets, such as land development and construction loans, REITs, and commercial mortgages where the primary source of repayment is derived from rental income or the proceeds of the sale of the property. Owner-occupied CRE is explicitly excluded from the RAS CRE data set.
Comparative Data Elements
Tailored to U.S. commercial bank risk and portfolio management needs—as well as current regulatory requirements for Commercial Real Estate Risk Management Practices—RAS risk analytics offer multi-dimensional comparisons across relevant risk metrics and segments.
RAS Workstation for CRE
Member banks access RAS data through a Web-based analytical tool—the RAS Workstation. Featuring more than 40 standard report views and almost unlimited querying and customized reporting capabilities, RAS Workstation offers multiple display methods (tabular, graphic) and also integrates easily with other presentation and analytical tools.
