Business intelligence in today's banking challenges: Basel-II

Abstract

Information Technology and Information Management has become a crucial success factor for banking industry. Implementing the "New Accord on regulatory capital" published from the "Basel Committee on Banking Supervision" widely known as "Basel-II" enforces financial institutes to redefine their business processes and reporting mechanisms and - to support and enable this - to improve or even rebuild their banking information systems and infrastructure.Especially those financial institutes which used the opportunity to expand their businesses to Eastern Europe countries during the last years, mainly by acquisitions of other banks in this region, faced the challenge to integrate the various information systems into one integrated and transparent reporting architecture and solution.This Master Thesis describes how to implement Basel-II in an international banking group with existing, heterogeneous information systems landscape. It covers political issues, project management issues, technical issues and shows the Engineering Management approach on all this topics.The Thesis focuses especially on the managerial aspects of implementing a cross-over information system within an heterogeneous and international banking group.This Thesis can be also seen as a "Guide to implement Basel-II", it covers all required activities und milestones for achieving Basel-II compliance.A hypothetical project manager considering all the described tasks and subprojects in this thesis can lead a Basel-II project successfully.Among the many technical issues in a Basel-II implementation project, special emphasis was given to the issue of data consolidation and data cleansing.