crspl.info@careedge.in
Category:
Consulting
Date:
10 March 2023
Implementation in Sri Lanka – IFRS (IAS 39, IFRS 7) & FRA

Client Profile

One of the largest banks in Sri Lanka adopted CARE Risk – IFRS (IAS 39, IFRS 7) and FRA to achieve regulatory compliance and to improve their Risk Management & Regulatory Reporting Infrastructure.

Objective

To comply with IAS 39, IFRS 7 and enabling the bank to be ready for IFRS 9 adoption. 
Automate Financial Reporting thus to increase the efficiency and productivity across banks.

Problem Statements

Data available in disparate sources.
Unique identifier for a customer not available as each transactional system has its own CIF.
Computation of complicated statistical computations such as PD and LGD and availability and storage of Historical Complexity involved in preparation of IFRS 7 Risk based Disclosures.
Data required for the computations.
Time Consuming and complicated manual process.

Solutions

A common database akin to a data warehouse was created for data collation.
A unique identifier was generated through the system using NIC number for Retail customers and BRN number for other customers.
System facilitates historical data storage required for PD & LGD computation.
Manual Upload facility where historical data was unavailable in legacy system.
Automated Computation of PD & LGD thus eliminating manual errors.
GL Recon engine which reconciles transactional with GL on the click of button
Fully configurable Reporting Engine which can be configured from the front-end by business users thus generating IFRS 7 Risk Based Disclosure reports without much manual intervention.

Benefits

Reduced time frame for automated financial reporting from 60 days to 15 days.
Total STP with audit controls.
Bank is able to comply with regulatory needs.
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