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Expected Credit Loss Tool for Stage 3 exposures under IFRS 9, General Approach

Our ECL Tool for Stage 3 exposures under IFRS 9 – General Approach is designed to help financial institutions and businesses accurately calculate expected credit losses with ease and compliance. The tool is used for exposures in default, with objective evidence of impairment. Such exposures have PD = 1. The tool calculates automatically the expected credit loss (ECL) of the instrument given various scenarios for expected future cash flows from the instruments. It enables users to meet IFRS 9 requirements efficiently while gaining deeper insights into credit risk and exposure health.

The tool streamlines ECL estimation through a detailed yet materially automated process. It offers a straightforward way to calculate ECL, leveraging your inputs about scenarios and expected future cash flows under each scenario:

User-provided inputs include data about the borrower and the instrument (e.g. gross carrying amount, effective interest rate).
The tool allows for the user to create scenario analyses, under which expected payment profiles can be created. Repayment plans and expected cash flows are uploaded for each scenario.
Probabilities are assigned to each scenario, so that probability weighted assessment of expected cash flows can be calculated.
With these inputs complete, ECL is automatically calculated to determine the instrument’s impairment for the period.

The methodology and the approach of the tool have been consulted with IFRS experts from a leading audit firm.

Advantages:

Fast and easy-to-use
Best-practice compliant approach to ECL calculations on Stage 3 exposures

Robust risk scenario testing
Support and help available thought the process

Are you ready to harness the power of this tool and streamline your financial processes, ensuring compliance and driving better, more informed business decisions?

Expected Credit Loss Tool for Stage 3 exposures under IFRS 9, General Approach

The tool streamlines ECL estimation through a detailed yet materially automated process. It offers a straightforward way to calculate ECL, leveraging your inputs about scenarios and expected future cash flows under each scenario:

Advantages:

Are you ready to harness the power of this tool and streamline your financial processes, ensuring compliance and driving better, more informed business decisions?

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