Milan, March 2, 2018

CRIF was one of the speakers at “The European Banking Union and its impacts on less significant banks”

On February 22 and 23, 2018, ABIFormazione, in conjunction with the ABI Financial Markets and Strategies Department, organized two days of training in Milan on “The European Banking Union and its impacts on less significant banks” and “The upcoming changes to prudential supervision”, with talks from representatives of the ECB, the EBA, significant and less significant banks, academics and consultants.

Marco Macellari, Senior Manager at CRIF Credit Solutions, was one of the speakers during the session entitled “The challenge for LSIs in the active management of NPLs and the start of IFRS9” with a presentation on “IFRS 9 validation for less significant banks: proportionality and comparability”. The key components of the speech were:

  • IFRS 9 validation is a structured process required by the regulations. The performance of activities independently or with partial/complete outsourcing is determined by the trade-off between organizational complexity, costs and availability of know-how
  • The development function (even if a consortium) must enable analysis of the methodology and the code. The aim of the validation is to assess the methodological and operational choices regarding the bank's portfolio
  • The validation results may lead to the optimization of impacts on the profit and loss account of the bank and on the regulatory capital. Benchmarking with external data and methodologies reinforces/supplements the outcome of the validation
  • IFRS 9 is connected to the bank's business model. The methodological and operational choices must be assessed based on integration in the «credit value chain»