Banks & Other Financial Institutions

Over the past decade, the evolution in financial markets has caused disintermediation in the traditional banking business, creating a shift in balance sheet composition. Commercial borrowers are relying more heavily on the capital markets, and investment banks have increased their securitization activities as well as the direct extension of credit. Combined with economic trends, this has led to stagnant loan portfolio growth.

As a result, banks have been compelled to invest in other asset classes, specifically securities portfolios. As securities portfolios grow in size, diversity and complexity, banks need sophisticated tools to fully understand the risks inherent in their holdings. BlackRock Solutions offers banks a variety of services - from risk reporting on the balance sheet to a portfolio management and trading platform - designed to help banks better understand risks and position the securities portfolio to respond to changes in the marketplace. Beyond the securities portfolio, BlackRock Solutions models commercial and consumer loans as well as deposits and wholesale liabilities. This creates an enterprise-level view of the economic value of equity within the institution, appropriate for senior level oversight. BlackRock Solutions has extensive experience working with the complex regulatory and operational environments of large financial institutions and addressing the needs of multiple constituents. A foundation of strong controls, extensive security master coverage and derivatives support allows BlackRock Solutions to provide its clients with comprehensive risk analytics, including robust stress testing and scenario analyses, designed to meet the challenges of an evolving marketplace.

To find out how BlackRock Solutions can help you, contact us.