The CareEdge Analytics Kalypto Expected Credit Loss (KECL) suite offers comprehensive support for financial institutions navigating the implementation of expected credit loss and impairment analysis under IFRS 9. Here's how our solutions can assist banks in meeting the requirements of this accounting standard.
Key Features
Credit Risk Models and Data
Kalypto Expected Credit Loss (KECL) provides access to a wide range of credit risk models and economic forecasts, along with extensive datasets. These resources are essential for developing or enhancing existing models to calculate expected credit losses (ECL) accurately. Our expertise can help firms interpret the changes required for probability of default (PD) and loss given default (LGD) models, ensuring consistency across various risk assessment frameworks.
Expected Credit Loss Calculation
Our suite offers solutions for the crucial aspects of impairment calculation under IFRS 9. We support different approaches taken by institutions, whether small or large, in estimating losses. Our tools assist in enhancing model processes and infrastructure to accommodate provision calculations, ensuring alignment with stress testing, internal capital adequacy assessment process (ICAAP), and pricing models.
Data and Economic Scenarios
Meeting the forward-looking aspect of impairment calculations requires historical, granular data and trend information. Kalypto Expected Credit Loss (KECL) offers the most comprehensive credit risk, economic, and financial datasets to build forward-looking impairment models. We produce standard and custom macroeconomic scenarios to support "forward-looking" and "probability-weighted" aspects of IFRS 9 impairment calculations.
Software for IFRS 9 Compliance
Our software facilitates the end-to-end process of ECL calculations, including data centralization, model coordination, credit risk evaluation, and provision calculation. Designed for multiple scenarios and what-if capabilities, our solution enables high-performance granular analysis and accurate calculations. The software features flexible and visual workflow management, supporting impairment analysis with a repeatable, auditable, and consistent process.
Overall, Kalypto Expected Credit Loss (KECL) offers a comprehensive suite of tools and services to assist banks in implementing IFRS 9 requirements effectively. Our solutions empower financial institutions to navigate the complexities of expected credit loss and impairment analysis, ensuring compliance with regulatory standards and enhancing risk management practices.