The financial services industry has recently undergone a major change due to the introduction of IFRS 9 impairment requirements. This has come generally at increased costs due to either the redirection of internal resource or engagement of third parties to develop compliant models.
4most, the leading risk analytics consultancy, today announces that it has sold majority ownership to an EOT (Employee Ownership Trust). Co-founders Sisson and Somers, together with early investors Beechbrook Capital have sold 55% of the issued share capital to the Trust which will ultimately own the company for the benefit of staff. Sisson and Somers will remain on the board and continue to manage and run 4most Group.
IFRS9 Expected Credit Losses (ECL) are commonly calculated as the sum of the marginal future expected losses in each period following the reporting date, using PD, LGD and EAD components. ECL can also be calculated directly from expected future cash flows. This could be an attractive option for many short-term lenders, especially for those that cannot leverage existing PD, LGD and EAD models, as it requires developing a single cash flow model.
The Bank of England has today published the latest outlook from the Financial Policy Committee and outlined the scenario for 2018’s bank stress tests, providing us with an indication of its likely areas of focus in assessing UK financial stability.
Open Banking will transform UK banking. For consumers, the whole experience will be more convenient, with better digital banking capability, more targeted and appropriate products and potentially better deals.