Oracle Financial Services CECL Solution

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Overview

The latest guidelines by FASB on CECL along with intersecting guidelines on Classification and Measurement, Valuations and Hedge accounting will result in major changes in the way most financial institutions account for financial instruments in their books. These along with PCAOB’s auditing standard on accounting estimates makes it pertinent for banks and financial institutions to overhaul their systems to not only cater to the changes in computation but also enable transparency, traceability and auditability.

Key Features

    • Out-of-the-box, end to end solution designed specifically to help financial institutions comply with CECL
    • Preconfigured with intelligent analytical models and business rules, exhaustive comprehensive data lineage and data-governance with extensive depth of data, and traceability capabilities
    • User Interfaces to generate forward looking risk parameters and perform reserve adjustments
    • Key disclosure reports through Oracle Business Intelligence
    • Preconfigured with intelligent analytical models, exhaustive comprehensive data lineage and data-governance with extensive depth of data, and traceability capabilities
    • OFSAA regulatory compliance solutions are continuously updated to reflect changing industry standards and regulations

Key Benefits

Oracle Financial Services Analytical Applications (OFSAA) solution for CECL is built on the integrated Risk and Finance architecture, and helps financial institutions comply with continuously changing standards and regulations.

Key benefits include:

  • Multiple compute intensive methods for CECL;

    • Roll rate

    • Net Loss rate

    • Cash flow based methods using cumulative PD adjusted for future forecast

    • Vintage Analysis

    • Exposure at default based methods

    • Provision Rate methods

  • Prebuilt models for PD compute enables through a Modeling Framework

  • Models for life of loan estimation

  • Segmentation based on similar risk based characteristics

  • Prebuilt configurable rules for classification of debt securities into HTM and AFS

  • Fair valuations for AFS debt securities

  • Hedge Accounting

  • Enablement of accounting events

Product/Service details