Select-9 is a powerful, flexible, easy to use and transparent application for calculating credit impairment based on International Financial Reporting Standard (IFRS) 9 (“Financial Instruments”). In addition to its key calculations, Select-9* offers reporting based on FINREP guidelines.
Select – 9 solves the following client challenges:
• Detailed cash flow projections by instrument, with daily precision;
• EIR calculation – The software allows for custom fee structures, as well as all major embedded optionalities significant for EIR calculation according to the Standard (prepayment, exchange rate and interest rate caps and floors…);
• Efficient collateral allocation, in order to minimize total impairment;
• Customizable staging algorithm;
• Inclusion of scenario assumptions in Stage 3 impairment (collateral vs. cash flow);
• Lifetime PD calculation based on transition matrices or flow rates (homogeneous Markov chains and Weibull distribution assumptions);
• LGD evolution in lifetime expected loss calculation;
• Point-in-Time transformations (supports variable scaling and Bayesian scaling) and for-ward-looking macroeconomic scenarios;
• Calculation of ECL by instrument;
• Accounting reports – credit impairment by account;
• Reporting and disclosures.
• Automated collateral allocation;
• Calculating the effective interest rate (EIR) or using the one supplied by the client;
• Staging algorithm, based on both mandatory criteria and fully customizable criteria conforming to regulation;
• Generation of contractual cash flows for lifetime ECL calculation;
• Calculation of impairment values per instrument or entry;
• Reporting based on FINREP guidelines.