The BCBS has provided guidance to banks and regulators on the implementation of expected credit loss (ECL) accounting frameworks. The key points are:
1) BCBS emphasizes the importance of a high-quality, robust, and consistent implementation of ECL accounting standards across internationally active banks.
2) Supervisors will play an important role in reviewing banks' ECL methodologies and ensuring deficiencies are addressed.
3) Banks should leverage existing credit risk processes and infrastructure for ECL estimations where possible to promote consistency, but methodologies may differ from regulatory capital calculations.
4) Banks must estimate ECLs for all lending exposures and consider materiality, proportionality, and portfolio complexity in their method
12. About
Aptivaa is a vertically focused finance and risk management
consulting and analytics firm with world-class competencies in Credit
Risk, Market Risk, Operational Risk, Basel III, IFRS-9, Risk Analytics,
COSO, ALM, Model Risk Management, ICAAP, Stress Testing, Risk
Data and Reporting. Aptivaa has emerged as a leading risk
management solutions firm having served over 100 clients across 22
countries comprising of highly respected names in the financial
services industry.
Aptivaa’s LEO suite of proprietary tools & frameworks are designed to
accelerate IFRS-9 implementation in areas such as classification,
stage evaluation, PIT-PD Calibration, Lifetime-PD, LGD, EAD and
Lifetime ECL.
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Feel free to send your IFRS-9 related queries to:
Sandip Mukherjee
Co-Founder and Principal Consultant
Email: sandip.mukherjee@aptivaa.com
Phone: +91- 98210- 41373
Contact: info@aptivaa.com | www.linkedin.com/company/aptivaaWebsite: www.aptivaa.com |