1. User Guide
  2. Business Rules Administration
  3. ECL Rules

ECL Rules

This topic provides information on the features under ECL Rules:
  • Provision Matrix Rules: IFRS9SCS supports the Provision Matrix ECL method. Provision rate is required for the provision matrix method. This UI enables the user to create a Provision Matrix. The provision Matrix Rule is at the modelling set and economic scenario rule level.
  • Economic Scenario Rules: Under IFRS 9, it is required to calculate Expected Credit Loss (ECL) for multiple economic scenarios. Multiple economic scenarios are created in dimension.
  • Term Structure Rules: IFRS9SCS enables users to provide a series of term structures for the Probability of Default (PD), Loss Given Default (LGD) and Credit Conversion Factor (CCF). Term structure means values across multiple periods.
  • Term Structure and Provision Rate Assignment Rules: Term Structure and Provision Rate Assignment rules are created at the Modelling Set and Economic Scenario Rule level. The user can assign the Term Rule (PD, LGD, CCF) and Provision Matrix Rule at the product and Customer type level.