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03                                                                                                                 Chennai, 28 July 2020: BCT Digital, a global Fintech   functions support validation and
                                                                                                                                        company specializing in BFSI, Predictive Analytics, and Risk
                                                                                                                                                                                          calibration of models to ensure that the
                                                                                                                                        Management, has announced the launch of rt360-ECL   process is efficient and robust. It’s
                                                                                                                                        solution from ‘IND AS 109 Product Suite’ for Expected   essential value additions include
                     BCT Digital                                                                                                        Credit Loss (ECL) reporting. The rt360-ECL is an integral   automation of credit risk monitoring
                                                                                                                                        part of the IND AS 109 Product Suite and has been   processes, faster turnaround time to
                     launches                                                                                                           designed exclusively keeping in mind the unique and specific   achieve regulatory compliance and
                                                                                                                                        nuances of Indian Financial Institutions and the Indian
                                                                                                                                                                                          internal reporting and proactive credit
                     rt360 -                                                                                                            Regulatory Environment.                           risk assessment and monitoring. The
                                                                                                                                                                                          core features of the rt360-ECL include
                                                                                                                                        With the introduction of the global International Financial   computing 12 months’ and lifetime ECL
                     Expected                                                                                                           Reporting Standards-9 (IFRS 9) and its equivalent Indian   for both fund-based and non-fund-
                                                                                                                                        Accounting Standards (IND AS) 109, financial institutions are
                                                                                                                                                                                          based facilities; automated computation
                     Credit Loss                                                                                                        moving towards adopting scientific methods for computing   of Probability of Default, (Loss Given
                                                                                                                                        credit losses. The first set of guidelines in this regard were
                                                                                                                                                                                          Default and Exposure at Default);
                                                                                                                                        issued by the RBI in February 2016, which was followed by   Effective Interest Rate computation;
                     (ECL), an                                                                                                          a series of amendments, and the latest one was issued in   automated validation of parameters as
                                                                                                                                        March 2020. This amendment announced the          per RBI/Basel requirements through a
                     IND AS                                                                                                             implementation of the Indian Accounting Standards,   pre-built library of model validation
                                                                                                                                        including IND AS 109 for NBFCs and Asset Reconstruction   tests; integration with other solutions,
                     109                                                                                                                Companies.                                        such as core banking/Asset Liability
                                                                                                                                                                                          Management systems& and prebuilt
                                                                                                                                        IND AS 109 requires financial institutions to take the   dashboards for management reporting.
                     product                                                                                                            Expected Credit Loss (ECL) approach as opposed to the   Click here for more information.
                                                                                                                                        Incurred Loss approach. Under the ECL approach, credit
                     suite                                                                                                              losses must be granularly and systematically estimated and   BCT Digital being a FinTech specialist
                                                                                                                                        provided for throughout the life span of a loan. The rt360-
                                                                                                                                                                                          and pioneer in risk management
                                                                                                                                        ECL is a business-driven technology solution that enables   solutions aims to empower banks and
                     Automating the Credit                            “During these unprecedented times, banks                          banks to compute Expected Credit Loss as per regulatory   financial institutions to recognize
                     Risk Monitoring Process                          are facing huge credit losses as their                            guidelines, while addressing requirements such as Point-In-  expected change in credit risk and
                                                                                                                                        Time Probability of Default (PD), Validation and forward-
                     for effective Credit Loss                        customers suffer through the COVID-19                                                                               provide a framework to manage
                     Management                                       pandemic. Managing credit risk in a volatile                      looking estimates.                                forward-looking credit loss through the
                                                                      financial market is very critical. If not carefully               “During these unprecedented times, banks are facing huge   rt360 Risk Management Suite. rt360 risk
                                                                      monitored, the systemic risks can easily                          credit losses as their customers suffer through the COVID-  products are a 100% “Made in India”,
                                                                      snowball, and this can impact not only the                        19 pandemic. Managing credit risk in a volatile financial   by BCT Digital, keeping in mind the
                                                                      banking network, but also the financial health                    market is very critical. If not carefully monitored, the   complexity of internal and external risk
                                                                                                                                                                                          factors faced by banks.
                                                                      of the country at a macroeconomic level.                          systemic risks can easily snowball, and this can impact not
                                                                      The rt360-ECL is an integral part of BCT                          only the banking network, but also the financial health of the
                                                                      Digital’s IND AS 109 product suite and has                        country at a macroeconomic level. The rt360-ECL is an
                                                                      been exclusively designed keeping in mind                         integral part of BCT Digital’s IND AS 109 product suite and
                                                                      the unique nature of the Indian regulatory                        has been exclusively designed keeping in mind the unique
                                                                                                                                        nature of the Indian regulatory environment and specific
                                                                      environment and specific nuances of Indian
                                                                                                                                        nuances of Indian financial institutions.” said Jaya
                                                                      financial institutions.”
                                                                                                                                        Vaidhyanathan, CEO at BCT Digital.
                                                                                                                                        The rt360-ECL aggregates banks’ historical data and
                                                                                                                                        estimates parameters such as Probability of Default (PD),
                                                                                                                                        Loss Given Default (LGD) and Exposure at Default (EAD)
                                                                                                                                        and Effective Interest Rate (EIR). It’s inbuilt standard




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