
11
Jul, 2016
Impairment Modeling in Retail – Many Moving Parts
Financial Institutions across the globe are preparing themselves to meet the January 2018 deadline for compliance with IFRS 9. One of the most critical aspects of the new standard is the way impairment provisions have to be calculated; moving away from an Incurred Loss model to an Expected Loss model. The model is commonly referred to as the “three-stage” Expected Credit Loss model (ECL) which has been explained in the earlier blog post “Stage Assessment – Devil is in the Detail”. Impairment modeling complexities can greatly differ between Corporate and Retail Portfolios and pose different […]
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