Case Study: LBS Bayern achieves Basel II-compliant automated regulatory equity calculations with SAS

LBS Bayern complies with risk regulations with SAS®

LBS Bayern, the largest building and loan association in Bavaria with about 1.5 million customers and nearly €47 billion in contracts, faced a tight regulatory challenge when Basel II and Germany’s SolvV replaced prior rules and required a fundamentally new way to calculate regulatory capital. The bank had to build a compliant system quickly to quantify credit and market risk and decide between the standard approach and the more complex internal-rating–based approach.

LBS implemented SAS Data Management and a consolidated data warehouse to ingest contract, scoring, default, investment and securities data, produce key-date snapshots, and run automated equity calculations for both the standard (KSA) and IRBA approaches from a single data mapping. Delivered in nine months on time and budget, the solution produces SolvV‑compliant, reproducible results, supports stress testing and ad‑hoc analyses, feeds regulatory reports automatically, and can be extended for internal reporting.

LBS Bayern

Carola Zaiss-Hillmeister

Project Manager