Expected Credit Loss
- Expected Credit Loss (ECL)
A Single Robust platform for Seamless Compliance
ECL is an integrated platform built for seamless computation of Expected Credit Loss using various methodologies, forecasting and insightful advanced analytics.
Solution helps financial institutions address operational complexities of evolving credit impairment accounting measurements with a user friendly and auditable platform. An intuitive IFRS-9 platform provides single layer for granular data consolidation, validation and reconciliation. It adopts comprehensive sub-modular approach for classification, measurement, model inventory, expected credit loss engine and reporting.
Principle based forward looking coverage of IFRS 9 that primarily deals with financial instruments, including their recognition, measurement, classification, and derecognition:
- Classifications and Measurement: Classification of financial instruments through comprehensive framework assessment methodologies and measurement with audit trail for each output.
- Stage Assessment: Custom rules for allocating financial instruments to different stages.
- SICR Assessment: Quantitative, qualitative, and back-stop indicator approach for assessment of SICR.
- Complete Stack: ECL Computations methodologies and its components i.e., PD, LGD, EAD, TTC PD to PIT PD, 12-months PD vs Lifetime PD and PD Term Structure.
- Assessment Approach: Measurement of ECL both at obligor level as well as portfolio level.
- Effective Interest Rate: Equipped to calculate EIR for fixed rate / floating rate with or without transactions cost and in-built cash flow engine.
- Forward Looking: Incorporating configurable macro – economic variables for conversion of PIT to PIT forward looking PD.
In-built reports with deep drill-down from output to input ensuring process transparency and auditability
Pre-configured multiple Models for EAD, LGD and EAD.
Supports various simulations and stress testing of ECL
Perform deep variance analysis across time as well as different methodologies & scenarios.
Multi-source data integration including bank’s internal systems and spreadsheets.
Highly scalable architecture for easy transition to full implementation
Streamline complex workflows, resulting in significant time and cost savings for Banks and Financial Institutions