The benefits cannot be ignored

Most bankers have no problem understanding that the core definition of migration analysis includes focusing on the historical risk ratings of loans which eventually become a loss. The challenge in developing this highly beneficial study involves gathering individual loan data, on a quarter-by-quarter basis, which will yield meaningful results. At any level, this has been a highly manual, labor intensive task at best and an absolute impossibility at worst.

That is until now.

Most of the necessary data required to build a migration model already exists within a bank’s core system. MST captures this information, formats the data and produces reports that more accurately depict expected losses based on historic performance. Whether a bank uses this analysis for quarterly calculations or annualizes the average loss rates, migration analysis can be extremely useful.

MST makes migration analysis easy to implement and integrate into you bank’s loss provision considerations.