MIAC employs industry standards for model development and CECL, which have been chosen by leading participants including lenders, banks, accountants, and regulatory bodies. CECL outcomes are projected using macro factor forecast scenarios and MIAC’s family of behavioral models. MIAC’s powerful analytical tools perform CECL forecasting of the loss allowance for all types of financial assets, segmented into cohorts with similar attributes. Our CECL tools can also be used for ALM and DFAST/CCAR.
Model performing and non-performing assets, with built-in models responsive to both loan characteristics and macro factors data for all loan asset types.
Segmentation of loan, lease, and debt portfolios into identifiable portions with similar and discrete characteristics.
CECL is flexible and not prescriptive. Modeling methods can include Migration Analysis, Vintage Analysis, POD / LGD, and Loss-Rate history.
Our models have been used by internal, external, and regulator validators – includes significance tables and backtesting results.
Understand how portfolio losses will behave as the economy changes, and report on key portfolio risks.
Compare CECL scenarios, use alternative methodologies/models or scenarios, and weigh them.
MIAC has been modeling expected credit losses for loan valuations since our formation. MIAC can model all loan types and has supporting databases. Our toolkit of CECL software solutions can be used to deploy regulator-approved CECL modeling solutions.
These alternatives encompass both cash flow-based and non cash flow-based regulator-sanctioned methodologies.
MIAC’s behavioral modeling team can create custom models tailored to your specific portfolios and local circumstances.
MIAC can implement regulator-sanctioned tools and provide documentation on:
MIAC’s tools allow for the setup and comparison of different CECL methods.
The models menu allows you to select a modeling method, populate the required data either by a paste-in, manually, or extracted from loaded data.
FASB’s revised methodology formalizes the forecasting of expected credit losses on loan assets and prescribes best practices. MIAC has been modeling expected credit losses for loan valuations since our formation.
MIAC’s methodology for forecasting current expected credit loss is consistent with industry best practices as prescribed by FASB and the joint regulatory guidance. Our analytical tools have been developed internally, and constantly enhanced, for compliance with the recommended approaches. Access our FREE guide now.
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