Calculation of economic indicators for IFRS9, such as amortized cost of financial instruments, EIT and valuation reserves is performed based on the best-in-class system, Finastra Fusion Risk. The Fusion Risk system has extensive functional capabilities for automation of IFRS9 key requirements:
- Classification of financial instruments according to IFRS9 including qualitative and quantitative SPPI tests
- Calculation of amortized cost, factoring in events of the contract lifecycle (early repayment, arrears, restructuring, etc.), as well as the calculation of the effective interest rate (EIR)
- Calculation of amortization for commissions, fees and of penalties using linear and EIR methods
- Calculation of ECL and Loss Provisions for all impairment stages
Flexible Significant Credit Deterioration (SCD) business rules Creation and management of risk factor models (Point-in-Time PD, LGD, and EAD) and monitoring of SCD for assets is performed with the use of the Neoflex Datagram technological platform. Our Datagram platform is seamlessly integrated with Fusion Risk.
We offer our customers both customized on-premises implementations as well as a subscription to the standardized cloud calculator, IFRS9 SaaS.