IFRS 9

Methodology, business requirements, “turnkey” implementation

6 months for a “turnkey” implementation
BIG 4 Development of a methodology in association with the “Big Four” companies
100% compliance with the IFRS 9 requirements
  • Bank reporting requirements, starting in 2018
  • New classification of assets, SPPI tests for determining the category
  • New model of devaluation, increasing of sparing requirements
  • Reduction of time and costs for manual reporting

Our approach as a Business Integrator

We are a Business Integrator

  • Minimal efforts by the businessOur business analytics will hold an interview, prepare business requirements and coordinate them with you
  • Reducing efforts of a Bank’s IT serviceYour IT service will be able to get an optimal solution for your Bank together with our system analysts and system architects
  • Optimal solution for your taskChoose an optimal solution for your Bank together with our experts, specializing in the basic modern platforms and systems
  • We undertake functionality testingOur specialists will test a developed solution in compliance with both functional and business requirements

Solution structure

The solution covers all functions of regulatory reporting of IFRS 9

The assets classification

Pre-configured assets classification

  • Assets estimated by amortized cost
  • Assets measured at fair value through other comprehensive income
  • Assets measured at the fair value through profits and loss

Pre-configured models and SPPI tests

  • Business model with a purpose of withholding of financial assets for getting cash flows in accordance with a contract

Possibility of models setting and alteration by Bank employees

  • The test on compliance with criteria
  • Entering of advanced options

Impairment

Customizing of the current Bank PD, LGD models or their creation

  • Possibility of changing the amount of reserves via using different PD, LGD time horizons - On the horizon of 12 months - On the horizon of a transaction
  • Consideration of macroeconomic factors’ influence in the models of defaults at calculations of reserve
  • Setting of a transfer from TTC principle to PIT
  • Unlimited amount of models
  • Versioning models
  • Changing of PD models under an amendment of macroeconomic parameters
  • History of a depreciation in terms of portfolios and clients by the 3 stages of depreciation
  • Preparation of accounting entries on the reserves bookkeeping for the transfer to further processing of Bank accounting systems
  • Full cycle process of the calculation of impairment from the setting and management of the models to transferring of entries into accounting systems of the Bank

Hedge accounting

Calculation and verification of the fair value of financial instruments

  • Calculation of the fair value of financial instruments
  • Management of hedging relationships and monitoring of a hedge effectiveness
  • Open and widening data model for support of a hedge accounting

Implementation stages

Our partners

We use a set of the best world’s technologies in our solutions

Our advantages

We are experts in the banking business

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Business analytics with the real working experience on the key positions in TOP10 banks

Large-scale “turnkey” projects with the further guarantee and support

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Projects from business ideas to an implementation with the amount of more than 700 person-days

Got questions?

Oleg Ogorodnikov Head of Risk department