IFRS & Basel regulation
We help banks to comply with IFRS 9 and Basel II, III, IV while optimizing impairment calculations tailored to a specific portfolio structure and quality of a bank.
Adastra Business Consulting supports banks in enhancing the quality of its risk management and data governance in order to comply with applicable national and international regulations. We believe by doing so, we strengthen resilience of the banking sector as well as helps our clients to outperform the competition.
Our Services
We have solutions covering IFRS methodology and provisioning optimization, end-to-end solutions to cover Basel requirements in general and BCSB 239 in particular, NPE Guidance, NPL Guidance and solutions ensuring GDPR compliance.
We also perform stress testing tailored to specific segments of the portfolio, designed to help organizations to understand possible portfolio behavior in specific market conditions.
GDPR
We help to implement centralized consent management and authorization for the organization's customer data, making it clear to all group members and departments which data could be legally used for which purposes. Our solution laid a foundation for the group’s compliance with regulation and legislation such as GDPR.
Portfolio Stress Testing
We help organizations execute end to end stress testing with our battle tested stress testing framework. We simulate portfolio behavior in stress situations and its impact on expected credit losses. We also help to incorporate adjusted PD and LGD based on expected macroeconomic developments in collections segmentation and other risk processes.
The standard project consists of:
- Gathering needed data & performing data quality checks
- Segmentation of portfolio into groups with likely similar effect of expected shocks on PD and LGD
- Modelling of macroeconomic impact on PDs and LGD in every portfolio segment
- Performing of scenario analysis of possible negative shocks and calculation of adjusted PD & LGD
- Calculation of expected credit loss for current and future portfolio in stress situations
- Incorporation of PD and LGD adjustments based on macroeconomic developments into collections segmentation and other risk processes