Product

IFRS 9 Model

A Consultative, Compliant, Comprehensive, Collective solution for your benefits
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Product Overview

Achieving IFRS 9 compliance will remain important to banks/financial services as per regulatory guidelines in the region

Banks are looking for a partner to achieve following objective :
  • Perform gap analysis to identify probable causes for variations in provisions 
  • Evaluate existing PD,LGD models developed by solution provider
  • Perform validation exercise to verify stability and performance
  • Summarize any impact on ECL
  • Recommendations on way forward

A data-driven feasibility analysis would be performed:

Gap Analysis
Observe current variations and Identify existing gaps that impact provisions,
  • Portfolio delinquencies reported month-on-month
  • Distribution of delinquencies and exposures
  • Impact on ECL/provisions due to variations
Equifax shall evaluate summary of outcome to confirm,
  • Short term approach to remediate concerns in reporting ECL/ provisions
  • Long term approach by incorporating such variations in IFRS9 models
PD, LGD Model Validations
  • Observing, Evaluating build parameters of PiT PD, LGD
  • Analyzing default trend
  • Stability & Performance Testing for PiT PD, LGD models (if required, by segment)
  • Summarizing changes since development, recommendations

Model Validation and Realignment Stages Model Validation

REVIEW
  • Understand current IFRS9 model framework
  • Evaluate existing datasets and documentation
  • Analyze previous validations performed – gaps identified, documentation, findings, model updates
IMPLEMENTATION
  • IFRS 9 Model Realignment including forward looking approach
  • Models optimization
  • Scaling framework for making models future ready
SUPPORT
  • IFRS 9 Model developed and released by Equifax is independently validated by Bank Team
SIGNOFF
  • After successful closure of all comments from Validation
  • Deliver all documentation and SAS Code
  • Signoff from Bank
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