ECL Method Enhancements (26B)

The Advanced Forward Exposure ECL method now supports Drawn CCF and Scalar values at the account and macroeconomic scenario level.

• Drawn CCF at Account Level: Users can provide Drawn CCF values at the account and macroeconomic scenario level.
  • Drawn CCF represents the percentage applied to the currently utilized exposure amount to estimate Exposure at Default (EAD) for drawn balances in IFRS 9 ECL calculations.
  • By default, Drawn CCF is assumed to be 100%.
  • Drawn CCF impacts Allowance and EAD calculations.
• Scalar at Account Level: Users can provide Scalar values at the account and macroeconomic scenario level.
  • Scalar is an adjustment multiplier applied to model outputs or risk parameters in IFRS 9 ECL calculations to support management overlays, macroeconomic adjustments, or institution-specific calibration requirements.
  • By default, Scalar is assumed to be 1.
  • Scalar impacts Allowance and Provision calculations.

This enhancement provides greater flexibility and control in ECL calculations by allowing institutions to apply account-level adjustments for exposure and provisioning estimates.

Steps to enable and configure

This feature does not require any additional steps.

Key resources

See the Latest IFRS9 Solution Cloud Service Documentation